ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Utility, in economics, refers to the usefulness or enjoyment a consumer can get from a service or good. Although the concept of utility is abstract, it is a useful way to explain how and why consumers make their decisions.

Detailed explanation-2: -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-3: -Happiness Economics Indices Common ones include Gross Domestic Happiness (GDH) and happiness indices that aim to track the well-being of people living in several countries in the world.

Detailed explanation-4: -What Is Utility? In economics, utility refers to the satisfaction levels consumers receive from buying and using a product or service. According to utility theory, people make purchase decisions based on the degree of satisfaction they get from an item or service.

Detailed explanation-5: -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.