Question:
Differentiate between cardinal and ordinal measurements of utility.
Differentiate between cardinal and ordinal measurements of utility.
Show Hint
Cardinal utility assigns numerical values to satisfaction, while ordinal utility only ranks preferences.
Updated On: Nov 5, 2025
Hide Solution
Verified By Collegedunia
Solution and Explanation
- Cardinal Utility: Measures utility in numerical terms (e.g., utils) and assumes that the consumer can quantify satisfaction.
- Ordinal Utility: Measures utility in terms of preference ranking, where the consumer ranks goods in order of preference without assigning numerical values.
Was this answer helpful?
0
0
Top Questions on Consumer theory
Which of the following are applicable to the individual's expenditure function?
(A) It is homogeneous of degree zero in all prices.
(B) It represents the maximum expenditure to achieve a given level of utility.
(C) It is non-decreasing in prices.
(D) It is concave in prices.
Choose the correct answer from the options given below:
- CUET (PG) - 2025
- Economics
- Consumer theory
- An individual's utility function for two goods - milk (M) and butter (B) is given as \( U(M,B) = 5M - 10B \), and the cost of each unit of the two goods is Rs 1, with a weekly budget of Rs 5. Find the individual's utility maximizing choice.
- CUET (PG) - 2025
- Economics
- Consumer theory
- Suppose utility function of a consumer is \( u(x, y) = xy \), where \( x \) and \( y \) are quantities of the two commodities consumed. If price of \( x \) is Rs.1 and that of \( y \) is Rs.2, and income of the consumer is Rs.100, utility maximizing quantity consumption of \( x \) is ..........
- IIT JAM EN - 2025
- Economics
- Consumer theory
- In the case of first-degree price discrimination, which of the following statements is/are CORRECT in the long run?
- IIT JAM EN - 2025
- Economics
- Consumer theory
- Which of the following is/are the shock(s) to the IS curve?
- IIT JAM EN - 2025
- Economics
- Consumer theory
View More Questions
Questions Asked in UP Board XII exam
- How is the p-n junction diode used as the full wave rectifier ? Explain its working by drawing simple circuit.
- UP Board XII - 2025
- Semiconductor electronics: materials, devices and simple circuits
- Under perfect competition, the demand curve of a firm is
- UP Board XII - 2025
- Economics
- The correct IUPAC name for \( CH_2 = CHCH_2NHCH_3 \) is:
- Write \( \cot^{-1}\left\{\frac{1}{\sqrt{x^2-1}}\right\}; x>1 \) in the simplest form.
- UP Board XII - 2025
- Inverse Trigonometric Functions
- The degree of differential equation \[ 9 \frac{d^2y}{dx^2} = \left\{ 1 + \left(\frac{dy}{dx}\right)^2 \right\}^{\tfrac{3}{2}} \] is
- UP Board XII - 2025
- Differential Equations
View More Questions