The Statement Vital Few and Useful Many Is Applicable to The

question 5

Multiple Choice

The statement vital few and useful many is applicable to the:

• A) Pareto diagram
• B) cause and effect diagram
• C) check sheets
• D) process flow diagram

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Definitions:

Total Utility

The overall satisfaction or benefit a person receives from consuming a certain amount of goods or services.

Utility Maximization

The principle that individuals or firms seek to allocate their resources in a manner that maximizes their satisfaction or utility.

Money Income

Money income is the total amount of money earnings received by an individual or household, including wages, salaries, benefits, and investment income, before any deductions.

Marginal Utility

The additional satisfaction or utility a consumer receives from consuming one additional unit of a good or service.