Question

Economists measure utility

a. with a mythical unit called a "util"
b. with a special device neuroscientists developed to gauge satisfaction
c. using the marginal product
d. None of the available choices is correct in terms of the consumers budget constraint

Answer 1

d. None of the available choices is correct

Step-by-step explanation:

None of these options accurately describe a way in which utility can be measured. Utility is a concept widely used in economics which tries to measure the satisfaction that a consumer receives from a particular good or service. It is impossible to accurately measure the exact utility of a particular good to a consumer. Nevertheless, an estimation is useful when making decisions about how to distribute our money within a budget.