Under the cardinal utility approach, utility is assumed to be measured in hypothetical units called:

1. Marshall and other neo-classical economists used a psychological unit called the util. 2. Cardinal measurability means utility can be assigned numbers like 1, 2, 3 utils. 3. Money is treated only as a measuring rod, and ranking belongs to the ordinal approach, so the other options are wrong. _Source: ICAI BoS CA Foundation Paper 4 Business Economics, Ch 2 Unit II "Theory of Consumer Behaviour", p.3_