Question

When Economists speak of the utility of a certain product, they are referring to ______.

Options

• Demand for the product

• Usefulness of the product in consumption

• Satisfaction gained from consuming such product

• Rate at which consumers are willing to exchange one good for another

Answer 1

When Economists speak of the utility of a certain product, they are referring to satisfaction gained from consuming such product.

Explanation:

In economics, utility means the satisfaction a person derives from consuming a product. It does not necessarily mean that the product is objectively useful.