Macroeconomics: Principles, Problems, & Policies 20th Edition

Published by McGraw-Hill Education
ISBN 10: 0-07766-077-3
ISBN 13: 978-0-07766-077-2

Chapter 1 - Limits, Alternatives and Choices - Discussion Questions - Page 21: 3

Answer

Utility refers to how much pleasure an individual or firm will derive from acting in a specific way. The higher the utility, the better off the individual is.

Work Step by Step

This relates to purposeful behavior as it suggests that individuals are rational and will make choices to maximize their utility.
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