Asked by Mackenzie Higgins on Jun 05, 2024
Verified
What is subjective utility
A) an individual's willingness to take risks
B) a personal estimate of what the probability of an outcome is
C) the expected value of an outcome
D) what an outcome is personally worth to an individual
Subjective Utility
An individual's perceived value or satisfaction obtained from consuming goods or services.
Individual's Willingness
Refers to the level of readiness or eagerness a person has to engage in a particular behavior or action.
Outcome
The result or effect of an action, situation, or event; the consequence or end-result.
- Assess the effects of personal utility perceptions and forecasted value in individual choices.
Verified Answer
ZK
Zybrea KnightJun 05, 2024
Final Answer :
D
Explanation :
Subjective utility refers to the personal value or worth an individual assigns to a particular outcome, based on their own preferences, needs, and desires. It is different from objective utility, which is a measurable value based on an outcome's expected value and probability. Thus, subjective utility is the best choice out of the given options.
Learning Objectives
- Assess the effects of personal utility perceptions and forecasted value in individual choices.