Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Theory of Consumer behaviour

Question:

A teacher teaching in class said, "Different individuals can get different levels of utility from the same commodity."

According to you, what did the teacher mean?

 

Options:

Utility is subjective in nature

Utility is objective in nature

Utility is constant

None of the above

Correct Answer:

Utility is subjective in nature

Explanation:

Utility is subjective in nature, which means different individuals can get different levels of utility from the same commodity. For example, someone who likes chocolates will get much higher utility from a chocolate than someone who is not so fond of chocolates.