Agro-Finance Lecture-3 some fundamental terms of economics

Utility: It is a quality of a commodity to satisfy human need

Download 27.26 Kb.

1 2 3

3 Agro-Finance Lecture-3 Ist Semester 1 8 2011

Utility: It is a quality of a commodity to satisfy human need. Its characteristics are:

It is not inherent or internal but imposed quality or characteristic.
It varies from person to person, e.g. wine, mutton, toy, book etc.
It is present in both useful and harmful things, e.g. milk, drug etc.
It is a psychological and not physical trait.
It depends on many things, particularly income.
It cannot be measured by M, L, T directly but it can be measured by exchange value (Rs 10/ for a pen, Rs 2 for a pencil etc) or by unit measurement ( 1 Pen=5 Pencils).

1 2 3