BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
low scarcity
|
|
|
high utility
|
|
|
high scarcity
|
|
|
low utility
|
Detailed explanation-1: -Nineteenth century utilitarian philosophers considered happiness as the highest good (’utility’ in their words) and claimed political priority for attempts to promote the greatest happiness for the greatest number.
Detailed explanation-2: -The Ordinalist, or “revealed preference” revolution in Economics developed techniques for measuring individual welfare based on choice data alone. This clearly defines utility as a distinct concept from happiness. – Utility is the extent to which people get what they want. – Happiness is how people feel.
Detailed explanation-3: -So, understanding some simple mathematical concepts can help us make better decisions when it comes to investments and how we spend our money – and by helping to maximise our utility also has the potential to make us happier individuals.