Question

a) Marshall pointed out, money could measure utility, though in an indirect manner
b) Utility analysis is based on the ordinal number system

• A. Both (a) and (b) are true
• B. (a) is true, but (b) is false
• C. (a) is false, but (b) is true
• D. Both (a) and (b) are false

Answer 1

Answer: (B)

(a) is true, but (b) is false

1. True. Marshall pointed out, money could measure utility, though in an indirect manner. Thus for the same he derived the cardinal measure of utility where utility could be measured.
   
2. False. Utility analysis is based on the cardinal utility approach and on ordinal approach.