ECONOMICS (CBSE/UGC NET)

ECONOMICS

CONSUMERS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Cardinal approach is developed by
A
J R Hicks
B
Alfred Marshall
C
Adam Smith
D
Paul Samuelson
Explanation: 

Detailed explanation-1: -It was Alfred Marshall who first discussed the role played by the theory of utility in the theory of value. In Marshall’s theory, the concept of utility is cardinal. The price that a consumer is willing to pay for a good is an indication of the utility of that good to the consumer.

Detailed explanation-2: -The cardinal utility approach was founded by Alfred Marshall. He was one of the most influential economists of his time.

Detailed explanation-3: -Alfred Marshall and his admirers presented the Cardinal Utility approach, and Hicks and Allen pioneered the Ordinal Utility idea.

Detailed explanation-4: -The cardinal approach has come to be known as Marshallian approach. That is because it was proposed by Alfred Marshall. According to cardinal approach, the utility or satisfaction obtained from the consumption of goods and services can be measured by an imaginary unit called Utils.

Detailed explanation-5: -Cardinal Utility is the idea that economic welfare can be directly observable and be given a value. For example, people may be able to express the utility that consumption gives for certain goods. For example, if a Nissan car gives 5, 000 units of utility, a BMW car would give 8, 000 units.

There is 1 question to complete.