In Cardinal Utility Analysis

question 389

Multiple Choice

In cardinal utility analysis

• A) numbers can be assigned to utility.
• B) it is recognized that numbers can not be assigned to utility.
• C) the concept of marginal utility exists while in ordinal utility analysis marginal utility does not exist.
• D) marginal utility always increases as more of a good is consumed.

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Definitions:

Numerical Data

Information that is quantifiable and usually collected in number form, used for statistical analysis or calculations.

Interval Data

A type of numerical data which not only has order, but also has meaningful differences between values, though it lacks a true zero point (e.g., temperature in Celsius).

Ordinal

A type of data or scale that shows an ordered relationship among the variable's possible values, but does not specify the magnitude of difference between them.

Nominal

Referring to data classified into categories without a natural order or ranking among the categories.