alleryIn neo-classical economics, the term 'utility' is best described as the property of a commodity that gives it the power to:
Abe physically useful
Bbe morally beneficial
Csatisfy a human want
Dcommand a market price
Answer & Solution
Correct answer: C. satisfy a human want
1. Utility is the want-satisfying power of a commodity.
2. It measures the satisfaction a consumer expects from consuming a good.
3. Note that utility is ethically neutral and is not the same as usefulness, so the moral or physical-usefulness options are wrong.
_Source: ICAI BoS CA Foundation Paper 4 Business Economics, Ch 2 Unit II "Theory of Consumer Behaviour", p.2_
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