Question

In: Economics

Economists do not think it is possible to compare the relative utility that two people get...

Economists do not think it is possible to compare the relative utility that two people get from consuming an additional unit of a particular good.

True

False

Solutions

Expert Solution

ANSWER-

Economists do not think it is possible to compare the relative utility that two people get from consuming an additional unit of a particular good is TRUE.

As utility means the want satisfying power of the commodity which is subjective and it varies from person to person.

So, utility cannot be compared/measured.

Hence, the statement given in question is TRUE.


Related Solutions

Economists believe people should get paid according to the value of the output they produce. This...
Economists believe people should get paid according to the value of the output they produce. This is fairly easy to determine when you produce something physical, such as cupcakes. However, it becomes very difficult to measure if you are providing a service (perhaps teaching, or you're a doctor treating a medical condition). Regardless of how you measure the value of the output, the more productive you are the more valuable you are in the market to potential employers. This is...
Economists believe people should get paid according to the value of the output they produce. This...
Economists believe people should get paid according to the value of the output they produce. This is fairly easy to determine when you produce something physical, such as cupcakes. However, it becomes very difficult to measure if you are providing a service (perhaps teaching, or you're a doctor treating a medical condition). Regardless of how you measure the value of the output, the more productive you are the more valuable you are in the market to potential employers. This is...
Income and Poverty Economists believe people should get paid according to the value of the output...
Income and Poverty Economists believe people should get paid according to the value of the output they produce. This is fairly easy to determine when you produce something physical, such as cupcakes. However, it becomes very difficult to measure if you are providing a service (perhaps teaching, or you're a doctor treating a medical condition). Regardless of how you measure the value of the output, the more productive you are the more valuable you are in the market to potential...
why do economists use a utility function to present an economic agent’s preference ? Is this...
why do economists use a utility function to present an economic agent’s preference ? Is this utility- based approach plausible?
I think that auto insurance is a deterrent for most people to get into accidents. If...
I think that auto insurance is a deterrent for most people to get into accidents. If an individual gets into an accident that is his or her fault then the insurance premiums will go up in the future. As most people want to try and keep their rates low, they will drive safer and try to avoid accidents. If states did not require drivers to carry insurance then people would have to pay for all damage out of pocket. Auto...
4. Why do economists use a utility function to present an economic agent's preference? Is this...
4. Why do economists use a utility function to present an economic agent's preference? Is this utility-based approach plausible?
How do economists use the concepts of marginal utility and budget constraints to construct demand curves...
How do economists use the concepts of marginal utility and budget constraints to construct demand curves and determine the distribution of consumer spending? Discuss how marginal utility analysis can help you understand the purchasing patterns of a product or service you commonly buy. What might happen to your purchases if the price of the product changes, the price of a substitute product changes, or your income changes? Or if your tastes and preferences change?
Why do think it important that economists track the students “until they die “ ? What...
Why do think it important that economists track the students “until they die “ ? What type of question Would this information help answer?
1. How do economists define a nation’s wealth? Be as specific as possible, and explain why...
1. How do economists define a nation’s wealth? Be as specific as possible, and explain why each component is included and why others that might seem appropriate really are not.
this week we covered effective leadership and motivating people, how do you think the two of...
this week we covered effective leadership and motivating people, how do you think the two of these topics correlate, is a good leader also good at motivating people? Use the text and tie in your personal experiences to illustrate your thoughts.Please give well thought out responses
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT