Question

According to the ____ a consumer has a given scale of preference for different combinations of two goods. It is assumed that consumer can rank the goods as 1st , 2nd, 3rd, and 4th.

• A. cardinal approach
• B. ordinal approach
• C. either A or B
• D. none of the above

Answer 1

The correct option is B ordinal approach

In ordinal approach, utility cannot be measured in numeric terms. It can only be ranked or order. This approach is invented by the neo-classical economists.