Multiple choice

Utility may be defined as

  1. the power of a commodity to satisfy wants

  2. the usefulness of a commodity

  3. the desire for a commodity

  4. none of the above

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Utility in economics is defined as the want-satisfying power of a commodity. Option B is incorrect because usefulness is a practical concept, not the economic definition. Option C refers to desire, which precedes utility but isn't utility itself. Utility is an objective measure of satisfaction potential.