The capacity of a good or service to satisfy human wants____________________?
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Answer: A. Utility
Explanation
Utility measures the subjective capacity of a good or service to satisfy human wants and needs. It is a foundational concept in consumer choice theory explaining why people purchase items. Higher utility corresponds to greater consumer satisfaction derived from consumption. Economists measure utility in hypothetical units called utils to model consumer behavior. Total utility increases with consumption up to a point of satiety. Marginal utility measures the additional satisfaction gained from consuming one more unit.
Businesses design products and marketing strategies to maximize consumer perceived utility. Consumers allocate their limited budgets across goods to maximize total satisfaction. This principle underpins the entire demand side of microeconomics. Worth often implies market price or monetary value rather than subjective satisfaction. The point of satiety is the specific limit where additional consumption yields zero utility. Option D is incorrect because utility is the exact term defined.
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- Agriculture
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- Agriculture
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