Utility Refers to

question 314

Multiple Choice

Utility refers to

• A) the usefulness of a good or service.
• B) the value of a good or service.
• C) the want-satisfying power of a good or service.
• D) the degree to which a good or service is needed.

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Definitions:

Surplus

In economic terms, it refers to the amount by which production, assets, or resources exceed the portion used, often leading to excess supply in markets.

Shortage

A condition where the market's demand for a good or service outstrips its supply.

Price System

An economic mechanism wherein prices act as signals for the allocation of resources, influencing both producers and consumers in their decisions.

Buyers

Individuals or organizations that purchase goods or services for personal use, resale, or production of other goods and services.