Comparison of interpersonal utility is impossible because
ECONOMICS
JAMB 2012
Comparison of interpersonal utility is impossible because
- A. utility is measured in utils
- B. marginal utility is not observable
- C. utility is subjectively determined
- D. individual income differ
Correct Answer: C. utility is subjectively determined
Explanation
The comparison of interpersonal utility is impossible because the utility or the satisfaction derived from consuming a product is subject to what that individual has stated. It is impossible to say that Mr. A and Mr. derived the same level of satisfaction after consuming a bottle of water. This is because their level of satisfaction differs individually and only implicit values are used in comparison
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