A Big Concern with Trying to Measure Utility Is That

question 80

Multiple Choice

A big concern with trying to measure utility is that:

• A) individuals cannot place utility values on different goods and services.
• B) it is difficult to measure marginal utility.
• C) there is no distinction between utility for goods and utility for services.
• D) to measure utility, you need monetary values of the goods and services.
• E) each individual has a unique personal scale for her or his utility measures.

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Definitions:

Producing More X

Increasing the output or manufacture of a specific product or commodity, referred to as "X".

Society Gains

Refers to the overall benefits or improvements in welfare that accrue to a community or society from economic activities or policies.

Current Output

The total amount of goods or services produced by a firm or economy at a given time.

Pareto Optimality

An allocation of resources where any attempt to benefit one person results in harm to another.