Asked by Amber Koeuth on May 29, 2024
Verified
For economists,the satisfaction an individual derives from the consumption of goods and services is BEST described as:
A) happiness.
B) usefulness.
C) utility.
D) opportunity cost.
Utility
Utility is a measure of satisfaction or happiness that consumers derive from consuming goods and services.
Consumption
The use of goods and services by households or individuals, typically considered as the end phase in the economic cycle of production, distribution, and use.
Satisfaction
The fulfilment of one’s wishes, expectations, or needs, or the pleasure derived from this.
- Understand the concept of utility as the satisfaction derived from consuming goods and services.
Verified Answer
ZK
Zybrea KnightJun 03, 2024
Final Answer :
C
Explanation :
In economics, the satisfaction an individual derives from the consumption of goods and services is known as utility. Utility is measured in terms of the usefulness or satisfaction an individual derives from consuming a particular good or service. Therefore, option C is the best choice. Option A (happiness) is too broad and subjective, option B (usefulness) is partially correct but not specific enough, and option D (opportunity cost) refers to the cost of foregone alternatives, not satisfaction.
Learning Objectives
- Understand the concept of utility as the satisfaction derived from consuming goods and services.