Question: Utility In Economics Means The Capacity To?
a. Provide comforts
b. Satisfy human wants
c. Earn an income
d. Satisfy human motives
Show Answer
Satisfy human wants
In economics, utility refers to the capacity to satisfy a consumer’s wants or needs. It represents the value or satisfaction derived from consuming a good or service. Utility is subjective and varies from person to person, as it depends on individual preferences and circumstances. Economists use the concept of utility to analyze consumer behavior, determine demand, and understand how individuals make choices to maximize their overall satisfaction or happiness.