GK
INDIAN ECONOMY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Ordinal utility approach
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Cardinal utility approach
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The modern utility approach
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Indifference curve approach
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Detailed explanation-1: -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-2: -This analysis is known as indifference curve analysis. TYPES OF UTILITY. decreasing. H.H Gossen was the first economist to explain the law of diminishing marginal utility, and the law of equi marginal utility in 1854.
Detailed explanation-3: -Cardinal utility is an important concept in utilitarianism and neo-classical economics. Jeremy Bentham talked about utility as maximising pleasure and minimising pain. William Stanley Jevons, Léon Walras, and Alfred Marshall all developed concepts of utility, usually linked to market prices.