Give reason or explain:
4. Utility is a psychological term.
ANSWER:
4) Utility is a psychological term as it is difficult to measure utility in terms of numbers. That is, it cannot be measured cardinally, though for simplicity, we assume it to be measured in terms of numbers. Also, it cannot be seen or touched, but can only be experienced. Utility can only be measured ordinaly. For instance, a hungry person, after having food, derives a utility.
