Question

To an economist, utility refers to the______________.a. usefulness of a good or service.b. satisfaction that results from the consumption of a good.c. relative scarcity of a good.d. rate of decline in the demand curve.

Answer 1

Answer:

The correct answer is letter "B": satisfaction that results from the consumption of a good.

Explanation:

Utility is referred to as the satisfaction or joy an individual perceives by consuming a good or service. The more the individual consumes that good the higher the satisfaction until a point where the joy starts to diminish and is eventually null. The concept of utility assumes individuals make rational decisions to maximize their benefits.