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Eco 101 Online Quiz and Discussion (Utility and others)—-6/3/2023

Eco 101 Online Quiz and Discussion (Utility and others)—-6/3/2023
1) Briefly discuss the elementary theory of utility.
2) Mention and discuss the different views of utility according to the two schools of thoughts which you have been taught.
3) Explain the demand for and pricing of productive factors emphasizing on the labour market.

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  1. 1. Utility can be defined as the benefits or satisfaction which a person gets from the consumption of a good or service. Goods are desired because of their ability to satisfy human wants. The concept of utility is used here to express consumer’s taste and preferences. The analysis of consumer tastes and preferences is a crucial step in determining how a consumer maximizes satisfaction in spending income
    Utility is an abstract theoretical concept and units of utility are arbitrarily.

    * Total utility: This is the total benefits or satisfaction that a person gets from consumption of goods and services. The amount of total utility that a person gets depends on the person’s level of consumption. As an individual consumes more of a good per time period, his total utility or satisfaction increases.

    * Marginal utility: Marginal utility is the additional utility received from consuming one additional unit of the good per unit of time. We calculate marginal utility as the change in total utility that occurs when one more unit of good is consumed.

    *Average utility: This is the consumption of per unit of a commodity at a particular time.

    *Utility maximization: It is a point where consumer derives maximum satisfaction when his or her marginal utility is equal to the price of the commodity. Utility maximization is the attainment of the greatest possible total utility

    * The decline in marginal utility as consumption of the goods increases is known as the principles of diminishing marginal utility.

    2a. Cardinal school of thought: It states that utility can be measured or marked using numbers ranging from 0 to infinity. It is measured in utiles. That is after consuming a given quantity of a commodity the consumer can simply evaluate his satisfaction through the use of figures from 0 to infinity.
    Types
    * Time utility: This is the satisfaction derived from consuming a commodity at a particular time.
    * Place utility: This can be defined as the satisfaction you derive from how easily it is to obtain a particular commodity or product.
    * Form utility: This can be defined as a satisfaction derived from transforming products or goods from one form to another.
    * Possession utility: This is the satisfaction derived from an individual or consumer’s own product or property.
    Assumptions of Cardinal school of thought (approach)
    I) Utility can be measured
    II) It assumes that consumers are rational
    III) Concept of diminishing marginal utility
    IV) It assumes that income is held constant
    V) Total utility depends on goods and services

    2b. Ordinal school of thought
    It states that the satisfaction which a consumer derives from the consumption of goods and services cannot be expressed with numerical units. It measures utility objectively. It is based on marginal utility analysis.
    Assumptions of Ordinal school of thought
    I). Rationality of consumer: This analysis assumes the rational consumers whose objective is to maximize the utility under the budget constraint.
    II). Ordinal measurement: The utility is measured ordinaly by comparing the satisfaction whether higher or lower by consuming different bundles of goods. It is sufficient that the consumer expresses his or her preference for the various bundles of goods. It is not obligatory to undertake that utility is quantitative or quantifiable.
    III). Transitivity: According to this assumption, when there are three goods A, B and C and if the consumer choice is A>B, B>C, then A>C. It is acknowledged as transitivity in preference.
    IV). Consistency: As per this assumption, the consumer remains consistent in choice. If there are two goods A and B then A is preferred over B, that is A>B . At the same time B cannot be preferred over A that is B>A. It is called consistency in choice.
    V). Non-satiety: The consumer always prefers more over less if there is a choice available to him. It means the consumer has not reached to point of saturation incase of any commodity such condition is called non-satiety.
    VI). Diminishing marginal rate of substitution: Under this theory, the marginal rate of substitution between two goods always diminishes so that a consumer can attain the same level of satisfaction. It is given as ∆Y/∆X. In the case of two goods X and Y and it tells the rate of substituting commodity X to get one more unit of commodity Y.

    3. A Labour market is the place where workers and employers interact with each other. In the Labour market, employers compete to hire the best and the workers compete for the best satisfying job. A Labour market in an economy functions with demand and supply of labour. In this market, labour demand is the firm’s demand for labour and supply and is the worker’s supply of labour. The supply and demand of labour in the market is influenced by changes in bargaining power.
    Demand for Labour
    Labour markets like other goods market in the economy are governed by the forces of demand and supply of output. The supply and demand for labour determine the wage or prices paid for labour services.
    The demand for labour is a derived demand. Most labour services rather than being final goods are inputs into the production of other goods and services. To understand Labour demand, we first focus on firm’s demand for labour for production of a good.
    *Labour force: This is the number of working population willing and able to work.
    *Factors of production: This can be defined as the necessary inputs needed in production processes. They include;
    I) Land: Land as a factor of production is a free gift of nature and it is fixed. It is the oldest factor of production in the sense that it has been on earth before man started working on it. In Economics, Land includes free gift of nature like water, forest, mineral resources e.t.c. The reward of Land is Rent.
    II) Capital: This may be defined as wealth set aside for production of more wealth. Capital as a man-made factor of production includes physical cash, buildings, machineries, semi-finished goods and other equipments and tools used in production. The reward for capital is interest.
    III) Labour: This may defined as both physical and mental efforts of man directed to production. The reward for labour is wages and salaries.
    IV) Entrepreneur: This may be defined as the factor of production that coordinates and organises other factors of production for a more productive purpose. The reward for entrepreneurship is profit and loss.
    Concepts of productive factors
    I) Derived demand
    II) Value of marginal produce: Of a variable input is the additional revenue a firm earned from adding or employing a unit of that factor of production, that is, Labour.

  2. NWANKWO ESTHER CHIOMA
    ECONOMICS DEPT.
    2021/244120

    . Utility is a term used by economists to describe the measurement of “useful-ness” or “satisfaction” that a consumer obtains from any good or service. Utility may measure how much one enjoys a movie or the sense of security one gets from buying a deadbolt. The utility of any object or circumstance can be considered.
    Some examples include the utility from eating an apple, from living in a certain house, from voting for a specific candidate, or from having a given wireless phone plan. In fact, every decision that an individual makes in their daily life can be viewed as a comparison between the utility gained from pursuing one option or another .

    2. ORDINAL UTILITY: It ranks a series of options in order of preference. This ranking does not show how much more valuable one option is than another, only that one option is preferable over another. An example of a statement reflecting ordinal utility is that “I would rather read than watch television. ” Generally, ordinal utility is the preferred method for gauging utility.
    CARDINAL UTILITY: This also ranks a series of options in order of preference, but it also measures the magnitude of the utility differences. An example of a statement reflecting cardinal utility is “I would enjoy reading three times more than watching television. ” Given how difficult it is to precisely measure preference, cardinal utility is rarely used.
    NOTE: Utilities are measured in ‘UTILS’

    3. PRODUCTIVE FACTORS
    These are resources employed to produce goods and services, such as labor, land, and capital.

    Firms demand labor as an input to production. The cost of labor to a firm is called the ‘wage rate’. This can be thought of as the firm’s marginal cost. The additional revenue generated by hiring one more unit of labor is the marginal revenue product of labor (MRPL). This can be thought of as the marginal benefit.

    The labor market differs somewhat from the market for goods and services because labor demand is a derived demand; labor is not desired for its own sake but rather because it aids in producing output. Firms determine their demand for labor through a lens of profit maximization, ultimately seeking to produce the optimum level of output and the lowest possible cost.

    The pricing of productive factors, including labor, is determined by the interaction of supply and demand in the market. In a competitive labor market, the wage rate will be determined by the intersection of the labor supply curve, which represents the quantity of labor that workers are willing and able to supply at each wage rate, and the labor demand curve, which represents the quantity of labor that firms are willing and able to hire at each wage rate. If the labor market is competitive, the wage rate will be equal to the marginal revenue product of labor, which is the additional revenue generated by hiring an additional unit of labor.

  3. Avatar Okoye favour akachukwu says:

    NAME :OKOYE FAVOUR AKACHUKWU
    REG. NO: 2021/243637
    DEPARTMENT: HUMAN ANATOMY
    ECONOMICS ASSIGNMENT (ECO 101)
    1. Briefly discuss the elementary theory of utility.
    2.Mention and discuss the different views of utility according to the two school of thought which you have been taught.
    3.Explain the demand for and pricing of productive factors emphasizing on the labour market.
    SOLUTIONS TO ASSIGNMENT

    (1). THE ELEMENTARY THEORY OF UTILITY.
    In economics, utility is a term used to determine the worth or value of a good or service. More specifically, utility is the total satisfaction or benefit derived from consuming a good or service. Economic theories based on rational choice usually assume that consumers will strive to maximize their utility.
    The economic utility of a good or service is important to understand because it directly influences the demand, and therefore price, of that good or service. In practice, a consumer’s utility is usually impossible to measure or quantify. However, some economists believe that they can indirectly estimate what is the utility of an economic good or service by employing various models.
    Utility in economics is derived from the concept of usefulness. An economic good yields utility to the extent to which it’s useful for satisfying a consumer’s want or need.
    Various schools of thought differ as to how to model economic utility and measure the usefulness of a good or service.
    Utility in economics was first coined by the noted 18th-century Swiss mathematician Daniel Bernoulli. Since then, economic theory has progressed, leading to various types of economic utility.

    (2). THE DIFFERENT VIEWS OF UTILITY ACCORDING TO THE TWO SCHOOLS OF THOUGHT.
    The two schools of thought are:
    a. Cardinal school of thought.
    b. Ordinal School of thought.

    CARDINAL SCHOOL OF THOUGHT.
    Cardinal Utility is the idea that economic welfare can be directly observable and be given a value.
    For example, people may be able to express the utility that consumption gives for certain goods. For example, if a Nissan car gives 5,000 units of utility, a BMW car would give 8,000 units. This is important for welfare economics which tries to put values on consumption. For example, allocative efficiency is said to occur when Marginal cost = Marginal Utility.
    One way to try and put values on goods utility is to see what price they are willing to pay for a good.
    If we are willing to pay £5,000 for a second-hand Nissan Car, we can infer we must get 5,000 utils. In other words, the value of cardinal utility is related to the price we are willing to pay.
    The idea of cardinal utility is important to rational choice theory.

    ORDINAL SCHOOL OF THOUGHT.
    In ordinal utility, the consumer only ranks choices in terms of preference but we do not give exact numerical figures for utility.
    For example, we prefer a BMW car to a Nissan car, but we don’t say by how much.
    It is argued this is more relevant in the real world. When deciding where to go for lunch, we may just decide I prefer an Italian restaurant to Chinese. We don’t calculate the exact levels of utility.

    (3). THE DEMAND FOR AND PRICING OF PRODUCTIVE FACTORS EMPHASIZING ON THE LABOUR MARKET.
    Demand for labor increases as wages fall. And vice versa, demand falls as wages rise. As a result, the labor demand curve has a downward slope (negative slope).
    The law of diminishing marginal return explains the negative slope of the labor demand curve. The law says, when a company employs more workers, each additional worker contributes less to output. Because additional workers contribute less to additional output, businesses are willing to increase the workforce only when wages fall.
    The change in the wage rate causes the labor demanded to move along the curve. Meanwhile, changes in factors other than wages shift the curve to the right or left. Such factors include:
    (a).Changes in production level, in the aggregate, it is measured by economic growth.
    (b).Changes in production processes and technological advances
    (c).Quality of human resources
    (d).Number of companies in the market
    (e).Government regulations such as local labor recruitment and wage policy.
    The demand for labor depends on factors such as:
    A).Business profits are usually related to the conditions of the business cycle. The demand for labor decreases during an economic recession. In this period, business profits fall because aggregate demand decreases. Businesses stop hiring and choose to rationalize workers as they cut production. Conversely, the demand for labor increases during economic expansion.
    B).Minimum wages. Some companies offer low wages to support low operating costs. But, because the government imposes a minimum wage, they cannot do it. Hence, the minimum wage limits their demand to recruit workers.
    C).Wage subsidies. For example, the government provides incentives or wage subsidies for companies that employ or retain older workers. The purpose of subsidies is to compensate for the gap between wages and productivity of older workers.
    D).Policy on the recruitment of local labor. It affects demand because it reduces the flexibility of firms in choosing workers.
    E). Production processes and technological advances. Automation, for example, reduces the need for labor to operate production machines.
    F).Quality of human resources. Some jobs require more professional qualifications, so when the quality of local human resources does not meet the criteria, domestic labor demand is also low.
    G).Number of companies. More companies mean more demand for labor.

  4. Avatar Onyechi Rosemary Onyinye says:

    NAME: ONYECHI ROSEMARY ONYINYE
    REG. NUMBER: 2020/247137
    FACULTY: FACULTY OF HEALTH SCIENCES AND TECHNOLOGY
    DEPARTMENT: NURSING SCIENCE
    COURSE CODE: ECO 101
    EMAIL: onyisquare7@gmail.com
    QUESTIONS.
    1. Briefly discuss the elementary theory of utility.
    2.Mention and discuss the different views of utility according to the two school of thought which you have been taught.
    3.Explain the demand for and pricing of productive factors emphasizing on the labour market.
    SOLUTION TO THE QUESTIONS.
    Utility refers to the ability of goods and services to satisfy the unlimited human wants. It can also be viewed as the satisfaction, pleasure or fulfillment an individual derives from consumption of goods and services. Goods are desired because of their ability to satisfy human want.
    The concept of utility is used to express consumer’s taste and preferences. The analysis of consumer taste and preferences is a crucial step in determining how a consumer maximizes satisfaction in spending income.
    The utility of a consumer is hard to measure. However, it can be determined indirectly with consumer behavior theories, which assume that consumers will strive to maximize their utility with resources available to them. When a consumer derives satisfaction from consuming goods or services, it can be said that the goods or services consumed posses utility, which is relative to the consumer depending on time, place, form and possession.
    NO 2
    THE DIFFERENT VIEWS OF UTILITY ACCORDING TO THE TWO SCHOOLS OF THOUGHTS
    The two approaches of school of thought;
    1. Cardinal approach
    2. Ordinal approach

    CARDINAL
    This school of thought is of the opinion that utility is measurable i.e After consuming a given quantity of a commodity the consumer can simply evaluate his satisfaction through the use of figures which range from zero to infinity.

    Assumptions of the Cardinal Approach
    1. Utility is measurable.
    2. The consumer is rational.
    3. There is diminishing marginal utility.
    4. Total Utility (TU) depends on the quantity consumed.
    5. Money income of the consumer is held constant.

    ORDINAL
    The ordinal school of thought emphasizes that it is not possible for consumers to express the satisfaction derived from a commodity in absolute or numerical terms.
    Important tools of Ordinal utility
    1. The concept of indifference curves.
    2. The slope of indifference curves (Marginal Rate of Substitution (MRS)).
    3. The budget line.
    NO 3
    The demand for labor is an economics principle derived from the demand for a firm’s output. That is, if demand for a firm’s output increases, the firm will demand more labor, thus hiring more staff. And if demand for the firm’s output of goods and services decreases, in turn, it will require less labor and its demand for labor will fall, and less staff will be retained.
    Labor market factors drive the supply and demand for labor. Those seeking employment will supply their labor in exchange for wages. Businesses demanding labor from workers will pay for their time and skills.
    Changes in the marginal productivity of labor, such as technological advances brought on by computers.
    Changes in the prices of other factors of production, including shifts in the relative prices of labor and capital stock.
    Changes in the price of an entity’s output, usually from an entity charging more for their product or service.
    Changes in the marginal productivity of labor, such as technological advances brought on by computers
    Changes in the prices of other factors of production, including shifts in the relative prices of labor and capital stock.
    Changes in the price of an entity’s output, usually from an entity charging more for their product or service.
    Changes in the marginal productivity of labor, such as technological advances brought on by computers.
    Changes in the prices of other factors of production, including shifts in the relative prices of labor and capital stock.
    Changes in the price of an entity’s output, usually from an entity charging more for their product or service.

  5. Avatar Okoro Efeoghene Joseph 2021/243056 says:

    Name: Okoro Efeoghene Joseph
    Reg no: 2021/243056
    Department: combine social science (Economics & political science)
    Email: okorojosep297@gmail.com

    1) In economics, utility theory tries to explain the behavior of individual consumers in an economy. Utility theory argues that each person, given a list of options, can rank those options in a precise order of preference. Each person has different choices which are set, not changing over time.

    For example, imagine consumer A consistently prefers hamburgers to hot dogs, while consumer B always wants a hot dog more than a burger.

    2) Cardinal utility explains that the satisfaction level after consuming any goods or services can be scaled in terms of countable numbers.
    Example: Rice gives Esther 60 utils of satisfaction, whereas Beans gives her only 20 utils.
    Ordinal Utility explains that the satisfaction level after consuming any goods or services cannot be scaled in numbers. However, these things can be arranged in the order of preference.
    Example: Esther gets more satisfaction from Rice as compared to that of Beans.

    3) When producing goods and services, businesses require labor and capital as inputs to their production process. The demand for labor is an economics principle derived from the demand for a firm’s output. That is, if demand for a firm’s output increases, the firm will demand more labor, thus hiring more staff. And if demand for the firm’s output of goods and services decreases, in turn, it will require less labor and its demand for labor will fall, and less staff will be retained.

    Labor market factors drive the supply and demand for labor. Those seeking employment will supply their labor in exchange for wages. Businesses demanding labor from workers will pay for their time and skills.

  6. Avatar ONYEMAGWAM AKUNNAYA GIFT says:

    Name: Onyemagwam Akunnaya Gift
    Reg no:2021/243054
    level:100level
    Department: Combined Social Sciences
    Combination: Economics/sociology
    (1) utility can be defined as the level of satisfaction derived from a particular goods.it can also be defined as the amount of satisfaction a consumer gets from a particular goods or services.
    utility is measured in utils. humans taste are not homogeneous in nature so therefore the amount of utility derived varies from each consumer
    (2) Cardinal school of thought: this emphasis that utility is measurable.that is after consumer can simply evaluate his satisfaction through the use of figures which can range from zero to infinity
    (2b) Ordinal utility: this approach explains that the satisfaction level after consuming any goods or services cannot be scaled or measured in numbers . however these things can be arranged in the order of preference
    (3) when producing goods and services businesses requires labour and capital as inputs to their production process. the demand for labour is an economic principles derived from the demand for a firm’s output. if a labour productivity increases , firm’s will demand more labour at each wage rates and the firm’s demand for labour itself will increase.

  7. Avatar Onyejeaka Oluebube Adaku says:

    NAME: ONYEJEAKA OLUEBUBE ADAKU
    REG NŌ: 2020/246940
    DEPARTMENT: NURSING SCIENCE
    COURSE CODE: ECO 101
    Assignment
    1.The elementary theory of utility is a concept in economics that explains how individuals make choices between different goods or services. According to this theory, people make decisions based on the satisfaction, or “utility,” that they derive from consuming a good or service. Utility is a subjective measure, meaning that different individuals may derive different levels of satisfaction from the same good or service. However, economists assume that individuals are rational and seek to maximize their total utility. The law of diminishing marginal utility states that as an individual consumes more and more of a good, the additional satisfaction they receive from each additional unit of the good will decrease.
    2.There are two main schools of thought when it comes to utility: the classical and neoclassical schools. The classical school believed that utility was an objective measure that could be measured by the amount of labor that went into producing a good. They argued that the value of a good was based on the amount of labor that went into producing it, rather than the subjective satisfaction it provided to individuals. In contrast, the neoclassical school believed that utility was a subjective measure and that the value of a good was determined by the demand for it. They argued that individuals would only pay for goods that they believed would provide them with enough utility to justify the cost.
    3.The demand for productive factors, including labor, is determined by the marginal productivity of those factors. This means that firms will hire additional units of a factor of production, such as labor, as long as the marginal revenue product (MRP) of that factor is greater than its marginal cost (MC). The MRP is the additional revenue a firm generates by hiring an additional unit of a factor, while the MC is the additional cost incurred by hiring that additional unit.
    *. The pricing of productive factors, including labor, is determined by the interaction of supply and demand in the market. In a competitive labor market, the wage rate will be determined by the intersection of the labor supply curve, which represents the quantity of labor that workers are willing and able to supply at each wage rate, and the labor demand curve, which represents the quantity of labor that firms are willing and able to hire at each wage rate. If the labor market is competitive, the wage rate will be equal to the marginal revenue product of labor, which is the additional revenue generated by hiring an additional unit of labor. If the labor market is not competitive, for example if there is a monopoly or a union, the wage rate may be higher or lower than the marginal revenue product of labor.

  8. Avatar ONOJA KINGSLEY CHISOM says:

    NAME: ONOJA KINGSLEY CHISOM
    REG. NO: 2021/247636
    DEPARTMENT: COMBINE SOCIAL SCIENCE (ECONOMICS & PSYCHOLOGY)
    ECONOMICS ASSIGNMENT (ECO 101)
    1. Briefly discuss the elementary theory of utility.
    2.Mention and discuss the different views of utility according to the two school of thought which you have been taught.
    3.Explain the demand for and pricing of productive factors emphasizing on the labour market.
    SOLUTIONS TO ASSIGNMENT

    (1). THE ELEMENTARY THEORY OF UTILITY.
    In economics, utility is a term used to determine the worth or value of a good or service. More specifically, utility is the total satisfaction or benefit derived from consuming a good or service. Economic theories based on rational choice usually assume that consumers will strive to maximize their utility.
    The economic utility of a good or service is important to understand because it directly influences the demand, and therefore price, of that good or service. In practice, a consumer’s utility is usually impossible to measure or quantify. However, some economists believe that they can indirectly estimate what is the utility of an economic good or service by employing various models.
    Utility in economics is derived from the concept of usefulness. An economic good yields utility to the extent to which it’s useful for satisfying a consumer’s want or need.
    Various schools of thought differ as to how to model economic utility and measure the usefulness of a good or service.
    Utility in economics was first coined by the noted 18th-century Swiss mathematician Daniel Bernoulli. Since then, economic theory has progressed, leading to various types of economic utility.

    (2). THE DIFFERENT VIEWS OF UTILITY ACCORDING TO THE TWO SCHOOLS OF THOUGHT.
    The two schools of thought are:
    a. Cardinal school of thought.
    b. Ordinal School of thought.

    CARDINAL SCHOOL OF THOUGHT.
    Cardinal Utility is the idea that economic welfare can be directly observable and be given a value.
    For example, people may be able to express the utility that consumption gives for certain goods. For example, if a Nissan car gives 5,000 units of utility, a BMW car would give 8,000 units. This is important for welfare economics which tries to put values on consumption. For example, allocative efficiency is said to occur when Marginal cost = Marginal Utility.
    One way to try and put values on goods utility is to see what price they are willing to pay for a good.
    If we are willing to pay £5,000 for a second-hand Nissan Car, we can infer we must get 5,000 utils. In other words, the value of cardinal utility is related to the price we are willing to pay.
    The idea of cardinal utility is important to rational choice theory.

    ORDINAL SCHOOL OF THOUGHT.
    In ordinal utility, the consumer only ranks choices in terms of preference but we do not give exact numerical figures for utility.
    For example, we prefer a BMW car to a Nissan car, but we don’t say by how much.
    It is argued this is more relevant in the real world. When deciding where to go for lunch, we may just decide I prefer an Italian restaurant to Chinese. We don’t calculate the exact levels of utility.

    (3). THE DEMAND FOR AND PRICING OF PRODUCTIVE FACTORS EMPHASIZING ON THE LABOUR MARKET.
    Demand for labor increases as wages fall. And vice versa, demand falls as wages rise. As a result, the labor demand curve has a downward slope (negative slope).
    The law of diminishing marginal return explains the negative slope of the labor demand curve. The law says, when a company employs more workers, each additional worker contributes less to output. Because additional workers contribute less to additional output, businesses are willing to increase the workforce only when wages fall.
    The change in the wage rate causes the labor demanded to move along the curve. Meanwhile, changes in factors other than wages shift the curve to the right or left. Such factors include:
    (a).Changes in production level, in the aggregate, it is measured by economic growth.
    (b).Changes in production processes and technological advances
    (c).Quality of human resources
    (d).Number of companies in the market
    (e).Government regulations such as local labor recruitment and wage policy.
    The demand for labor depends on factors such as:
    A).Business profits are usually related to the conditions of the business cycle. The demand for labor decreases during an economic recession. In this period, business profits fall because aggregate demand decreases. Businesses stop hiring and choose to rationalize workers as they cut production. Conversely, the demand for labor increases during economic expansion.
    B).Minimum wages. Some companies offer low wages to support low operating costs. But, because the government imposes a minimum wage, they cannot do it. Hence, the minimum wage limits their demand to recruit workers.
    C).Wage subsidies. For example, the government provides incentives or wage subsidies for companies that employ or retain older workers. The purpose of subsidies is to compensate for the gap between wages and productivity of older workers.
    D).Policy on the recruitment of local labor. It affects demand because it reduces the flexibility of firms in choosing workers.
    E). Production processes and technological advances. Automation, for example, reduces the need for labor to operate production machines.
    F).Quality of human resources. Some jobs require more professional qualifications, so when the quality of local human resources does not meet the criteria, domestic labor demand is also low.
    G).Number of companies. More companies mean more demand for labor.

  9. Avatar TOCHUKWU ADAORAH DESTINY says:

    NAME: TOCHUKWU ADAORAH DESTINY
    DEPARTMENT: ECONOMICS
    REG. NO. 2021/249145
    LEVEL: 100
    email: destinyadaorah@gmail.com

    1. The elementary theory of utility is a fundamental concept in microeconomics that attempts to explain how individuals make choices based on their preferences and constraints. According to this theory, people are rational and will try to maximize their satisfaction or utility from the goods and services they consume.

    Utility is a measure of the satisfaction or happiness that an individual derives from consuming a particular good or service. It is a subjective concept and varies from person to person. For example, one person may derive more utility from consuming a particular brand of coffee compared to another person.

    The theory of utility assumes that individuals have a preference ordering for different goods and services. This means that individuals can rank different goods and services in order of their preference, from the most desirable to the least desirable. As a result, individuals will allocate their resources towards the goods and services that provide them with the highest level of utility.

    The theory of utility also assumes that individuals face budget constraints. This means that individuals have limited resources, and they must allocate their resources efficiently to maximize their satisfaction. For example, if an individual has a limited budget, they may choose to spend more on necessities like food and shelter and less on luxuries like entertainment.

    In conclusion, the elementary theory of utility provides a framework for understanding how individuals make choices based on their preferences and constraints. It highlights the importance of subjective preferences and the need for individuals to allocate their resources efficiently to maximize their satisfaction.

    2. Cardinal utility explains that the satisfaction level after consuming any goods or services can be scaled in terms of countable numbers.
    Example: Rice gives Esther 60 utils of satisfaction, whereas Beans gives her only 20 utils.
    Ordinal Utility explains that the satisfaction level after consuming any goods or services cannot be scaled in numbers. However, these things can be arranged in the order of preference.
    Example: Esther gets more satisfaction from Rice as compared to that of Beans.

    3.

    The demand for productive factors, including labor, is determined by the productivity of these factors in the production process. Firms demand labor because it is an essential input in the production of goods and services. The higher the productivity of labor, the more firms will be willing to hire it, and the higher the demand for labor will be.

    The pricing of productive factors, including labor, is determined by the forces of supply and demand. In the labor market, the supply of labor is determined by the number of people who are willing and able to work, while the demand for labor is determined by the number of workers that firms are willing and able to hire.

    If the demand for labor is greater than the supply of labor, then the price of labor, which is the wage rate, will increase. This is because firms will need to compete for a limited pool of workers, and they will be willing to pay higher wages to attract and retain workers. On the other hand, if the supply of labor is greater than the demand for labor, then the price of labor will decrease. This is because workers will need to compete for a limited pool of job opportunities, and they will be willing to accept lower wages to secure employment.

    Other factors that can influence the demand for and pricing of labor include changes in technology, changes in the level of education and skill of workers, and changes in government policies such as minimum wage laws or labor market regulations.

    Overall, the demand for and pricing of labor are important factors in determining the level of employment and income in an economy, and they can have significant effects on the welfare of workers and the overall performance of the economy.

  10. Avatar Agbafo Kamsicho Chidinma. 2021/241951. 100 level, Economics department says:

    Agbafo Kamsicho
    2021/241951
    100 level
    Economics department

    1.Utility can be defined as the satisfaction one gets from the consumption of a product or a service rendered. There are different types of utility; place utility, time utility, form utility and possession utility
    Place utility can be defined as the satisfaction derived from consuming a particular product based on how easy it is to obtain at a particular place and time. For example bookstores in a university instead of a cinema.
    Time utility can be defined as the satisfaction derived from consuming a particular commodity at a particular time (there are exceptions). For example consuming ice cold water on a sunny afternoon.
    Form utility can be defined as the satisfaction derived from consuming a product after it has been transformed from its original state. An example is transforming flour to bread.
    Possession utility can be defined as the satisfaction derived from consuming a product that you own. For example, the satisfaction derived from baking a cake with your own oven or driving your own car.

    2. Cardinal school of thought – This school of thought states that utility can be measured. The amount of satisfaction one derived from a good or service can be measured. It is measured in utils. We see the concepts of utility here ie. Total Utility, marginal utility, average utility. There law of diminishing marginal utility is also present here; which states that utility increases with every additional commodity consumed until it becomes constant and then it starts to fall until it becomes negative.
    Total Utility(TU)- This can be defined as total satisfaction a consumer derived from consuming a number of commodities. Mathematically it can be expressed as AU x Q
    Average Utility(AU)- This is the satisfaction derived from consuming one commodity at a particular time.
    Mathematically it can be expressed as TU/Q
    Marginal utility(MU)- This is the additional satisfaction derived from consuming an additional unit of a commodity at a particular time. Mathematically it can be expressed as TU2- TU1/Q2-Q1

    Ordinal school of thought – This states that utility cannot be measured but it can be ranked. This is to say that utility cannot be measured as stated in cardinal school of thought but it can be ranked. This is where scale of preference and indifference curve in. The scale of preference is how we see the consumer’s preference and ranking of various commodities. In this way his utility is measured. Indifference curve can be defined as a mathematical graph showing the various combinations of two goods that give the consumer equal satisfaction.

    3. Labour market just like any other market is governed by the forces of demand and supply. The supply and demand for labour determines the wage or price paid for labour services.
    The law of demand applies in labor markets this way: A higher salary or wage—that is, a higher price in the labor market—leads to a decrease in the quantity of labor demanded by employers, while a lower salary or wage leads to an increase in the quantity of labor demanded.
    The labor market is an economic term for the availability and price employment. Like other markets, the price for labor is largely determined by supply and demand, although the labor market is also heavily regulated in many countries.

  11. Avatar Nwankwo chinecherem benedictha says:

    Name. Nwankwo chinecherem benedictha
    Reg number. 2021/243695
    Department.Economics

    1.in economics utility theory tries to explain the behaviour of individual consumers in an economy.utilitytheiry argues that each person, given a list of options, can rank those options in a precise order of preferences.Each person has different choices which are set, not changing over time.

    2. Ordinal school of thought
    Cardinal school of thought

    2a.ordinal school of thought refers to the concept of one good being more useful or desirable than another
    In this school of thought, it is argues that the utility of various commodities cannot be measured. Rather, they are ranked in order of preference. This school of thought argues that utility is a purely psychological element and therefore, cannot be expressed with cardinal numbers.

    Assumptions of the Cardinal Approach
    1. Utility is measurable.
    2. The consumer is rational.
    3. There is diminishing marginal utility.
    4. Total Utility (TU) depends on the quantity consumed.
    5. Money income of the consumer is held constant.

    2b.cardinal school of thought is the idea of measuring economic value through imaginary units, known as ‘utils’.
    Assumptions of the Cardinal School
    When propounding theories in economics, one has to make some assumptions regarding certain factors or variables due to the constraints of the social sciences and the cardinal school of thought is no exception. Here are some assumptions made by the school:
    1.)The consumer is rational
    2.) The commodity is able to be divided into different units.
    3.) Utility is measurable
    4.) There is are levels of absolute satisfaction
    5.) The income of the consumer is constant. That is, it doesn’t change.

    3.Demand for pricing of productive factors emphasizing on the labor market.
    Demand for a Factor of Production
    The demand for a factor is not a direct demand but it is an indirect or derived demand. The demand for labour, for example, is not demand for labour himself. It is in fact, demand for goods or services which the labour produces. Thus when demand for goods increases, the demand for the factors which produce those goods would also rise. If demand for goods is elastic, the demand for factors would also be elastic.
    The pricing of productive factors, including labor, is determined by the interaction of supply and demand in a competitive market. The wage rate for labor is determined by the equilibrium point where the supply of labor and the demand for labor intersect.

  12. Avatar 2021/246041 says:

    An Assignment on Eco 101 (The principle of Economics)

    Name: OGBONNA ISAIAH CHEKWUBE.
    Reg. Number: 2021/246041
    Department: Economics.

    Briefly discuss the elementary theory of utility.
    Utility is the ability of goods or services to satisfy unlimited human wants. It can also be referred to as the amount of satisfaction that a consumer drives from the consumption of goods and services at a particular time.
    Goods are desired because of their ability to satisfy human wants, bringing about the theory of utility which is based on the fact that satisfaction which consumer derived from consumption of goods or services can be measured quantitatively. This facts are total utility, average utility and marginal utility.

    Mention and discuss the different views of utility according to the two school of thought which you have been taught.
    The concept of utility can be analyzed and viewed basically by two school of thought as follows;
    The cardinal school of thought.
    The ordinal school of thought.

    The cardinal school of thought: This school of thought argued that utility is measurable. This means that the quantity of goods or services that satisfies the need of a consumer can be evaluated through figures ranging from zero to infinity.
    It is believed that the satisfaction a consumer derived from the consumption of a particular commodity is measurable with quantitative terms called utile.

    Ordinal school of thought: This school of thought opined that utility can be ranked and not measured as it is a psychological element and as such cannot be expressed in cardinal numbers. This means that the level of satisfaction a consumer drives after consuming various commodities cannot be measured in number but can be arranged in order of preference.

    Explain the demand for and pricing of production factors emphasizing on the labour market.
    Demand for and pricing of production factor (labour) is a concept that illustrate the amount of labour a firm is willing to employ at a particular wage rate. However, the determination of equilibrium in the labour market will also depend on the price and supply of labour.
    This stipulates that a higher price in the labour market leads to a decrease in the quantity of labour demanded by employers, while a lower price leads to an increase in the quantity of labour demanded, thereby factorizing price as an associate to avail the services rendered by the factors of production especially labour.

  13. Avatar IBENYENWA RANSOM UCHENNA says:

    1:THE ELEMENTARY THEORY OF UTILITY
    Utility is defined as the satisfaction a consumer derives from the consumption of a particular commodity at a particular time.

    Economic theories based on rational choice usually assume that consumers will strive to maximize their utility.
The economic utility of a good or service is important to understand because it directly influences the demand, and therefore price, of that good or service. In practice, a consumer’s utility is usually impossible to measure or quantify. However, some economists believe that they can indirectly estimate what is the utility of an economic good or service by employing various models.
Utility in economics is derived from the concept of usefulness. An economic good yields utility to the extent to which it’s useful for satisfying a consumer’s want or need.

    Whoever Various schools of thought differ as to how to model economic utility and measure the usefulness of a good or service.
Utility in economics was first formulated by the noted 18th-century Swiss mathematician Daniel Bernoulli. Ever since , economic theory has progressed, leading to various types of economic utility.

    2. THE DIFFERENT VIEWS OF UTILITY ACCORDING TO THE TWO SCHOOLS OF THOUGHTS
    The two approaches of school of thought;
    1. Cardinal approach
    2. Ordinal approach

    CARDINAL
    This school of thought is of the opinion that utility is measurable i.e After consuming a given quantity of a commodity the consumer can simply evaluate his satisfaction through the use of figures which range from zero to infinity.

    Assumptions of the Cardinal Approach
    1. Utility is measurable.
    2. The consumer is rational.
    3. There is diminishing marginal utility.
    4. Total Utility (TU) depends on the quantity consumed.
    5. Money income of the consumer is held constant.

    ORDINAL
    The ordinal school of thought emphasizes that it is not possible for consumers to express the satisfaction derived from a commodity in absolute or numerical terms.
    Important tools of Ordinal utility
    1. The concept of indifference curves.
    2. The slope of indifference curves (Marginal Rate of Substitution (MRS)).
    3. The budget line.

    3:THE DEMAND FOR AND PRICING OF PRODUCTIVE FACTORS WITH EMPHASIS ON THE LABOUR MARKET

    The modem theory of pricing of factors of production also known as”demand and supply theory” gives a satisfactory answer to determining factor prices. According to the theory, just as the price of a commodity which is determined by the forces of demand and supply, similarly the price of a factor of production is also determined by the demand for that factor and it’s supply. The demand for a factor is not a direct demand but an indirect or derived demand. For example, the demand for labour is not a demand for labour himself, it is in fact, demand for goods or services which the labour produces. Thus when demand for goods and services increases, the demand for the factor(labour) which produces those goods and services would increase also. If demand for goods and services is elastic, the demand for the factors would also be elastic and vice versa.

  14. Avatar Ogbodo Uchechukwu Jacinta says:

    OGBODO UCHECHUKWU JACINTA
    REG NO:2021/241933
    DEPARTMENT OF COMBINED SOCIAL SCIENCES ( ECONOMICS /SOCIOLOGY)
    ogbodoaxjacinta@gmail.com

    1) Utility is an economic term referring to the satisfaction received from consuming a good or service.
    Utility theory is based on the fact that satisfaction which consumers derived from consumption of goods and service can be measured quantitative.
    It suggests that goods,services,and items can be ranked according to their usefulness.The premise was initially theorized by swiss mathematician,Daniel Bernoulli on 18th centuary.

    THE DIFFERENT VIEWS OF UTILITY BY THE TWO SCHOOLS OF THOUGHT

    (2)DIFFERENT VIEWS OF UTILITY BY THE TWO SCHOOLS OF THOUGHT

    (I) CARDINAL SCHOOL OF THOUGHT:
    This school of thought argues that the utility of a commodity can be measured. Some of the economists who belong to this school of thought argue that utility can be measured subjectively in unit called ‘utils’. Others suggest that utility can be measured in monetary units by relating to the amount of money which the consumer is willing to pay for a given quantity of a commodity at a particular time.

    II) ORDINAL SCHOOL OF THOUGHT :
    The concept of ordinal utility states that the level of satisfaction a consumer obtains after consuming various commodities cannot be measured in numbers but can be arranged in the order of preference.

    3. THE LABOUR MARKET
    The demand for labour is a concept that illustrates the amount of labour a firm is willing to employ at a particular wage rate. The demand for labour shows how many workers an employer is willing and able to hire at a given wage rate at any time.
    The labour demand curve shows an inverse relationship between the employment level and the wage rate. It means that if the wage rate increases, employment level will reduce and vice versa (all things being equal)
    If a firms profitability increases, it will be able to hire more workers. This will lead to an crease in the demand for labour. Conversely, a firm that is making no profit and is consistently resisting losses will need to lay off workers as it will not be able to pay them anymore. This will subsequently reduce the demand for labour and shift the demand curve of labour inwards. A firm will demand for the labour only if an increase in the labour force will guarantee to bring in more profit.

  15. Avatar Nnoruka benedicta chinecherem says:

    Name: Nnoruka Benedicta Chinecherem
    Reg no: 2021/241348
    Department: Economics
    Email: nnorukabenedicta2004@gmail.com

    1. Utility is referred to as the satisfaction, pleasure or fulfillment a consumer derives from consuming a particular good. The concept of utility is used to determine consumer’s tastes and preferences which is an important step in determining how a consumer maximises satisfaction in spending income.
    The utility of a consumer cannot be measured but it can be determined indirectly with consumer behaviour theories which assumes that consumers will strive to maximise their utility with the available resources they have.
    However when a consumer derives satisfaction or pleasure from consuming a good or service, it can be said that the goods or services consumed possesses utility which is relative to the consumer depending on time, place, form and possession.
    2. The cardinal school of thought
    The ordinal school of thought
    The cardinal school of thought
    This school of thought emphasizes that utility is measurable. This means that the quantity of goods or services that satisfies the need of a consumer can be determined through figures ranging from zero to infinity. The cardinal school of thought assumes that;
    a) Total utility depends on the quantity of goods and services.
    b) Money income of the consumer is held constant
    C) There is diminishing marginal utility
    d) The consumer is rational
    e) Utility is measurable
    The Ordinal school of thought
    The ordinal approach of utility requires that consumers make a scale of preference by choosing between the various commodities that gives one the same level of satisfaction. This approach assumes that utility can be ranked at various levels of consumption. This approach makes use of an indifference curve that indicates the levels of satisfaction attained by a consumer from the consumption of two commodities.
    3. Labour market like other good market in the economy are governed by the forces of demand and supply. The supply and demand for labour determine the wage or price paid for labour services. Like all other prices, the price of labour (wage) depends on demand and supply. The demand curve reflects the value of marginal product of labour. Therefore, in equilibrium, workers receive the value of their marginal contribution to the production of goods and services.

  16. Avatar Mbaeze chidera marycynthia says:

    NAME-MBAEZE CHIDERA MARYCYNTHIA
    REG NO-2021/248750
    DEPARTMENT- ECONOMICS

    1.Theory of Utility: Utility may be defined as the ability of a commodity or service to satisfy consumers wants. Therefore when a consumer derives satisfaction from the consumption of any commodity or service, it can be said that commodity or service possesses utility. In other words, any commodity or service that possesses utility is useful to the consumer that used it. As a result of the fact that usefulness is a relative term, therefore, what may be useful to one person may not be to another. Utility therefore, is relative to a consumer depending on the time, place, form, nd possession etc. A commodity that can satisfy a consumer’s want at a particular points in time and place may not satisfy another’s want.Utility then depends on the form of the commodity, individual’s time and place.

    2. Difference view of utility according to school of thought are;
    a. Cardinal school of thought.
    b.Ordinal school of thought.
    a. Cardinal school of thought:
    The cardinal approach to the consumer behavior argued that utility can be measured in utils. In other words, it is believed that the satisfaction a consumer derived from the consumption of a particular commodity is measurable in quantitative terms called utils.
    This approach emphasizes that utility is measurable.that is,after consuming a given quantity of a commodity the consumer can simply evaluate his satisfaction through the use of figures which ranges from zero to infinity.
    b. Ordinal school of thought:
    This states that the utility or satisfaction a consumer gained from consuming various commodities cannot be measured in exact numbers but can only be ranked or put into order. E.g; we prefer a BMW car to a Nissan car, but we don’t say by how much.it is argued this is more relevant in the real world.
    Moreover, this approach argues that utility or satisfaction is completely a psychological element and it cannot be expressed in cardinal numbers. It is also expressed as utility analysis or indifference curve.

    3. Explain the demand for and pricing of productive factors emphasizing on the labour market.
    Ans: Labour market like other goods market in the economy are governed by the forces of demand and supply. The supply and demand for labour determine the wage or price paid for labour services. Like all prices, the price of labour (the wage) depends on supply and demand. The demand curve reflects the value of marginal product of labour. Therefore in equilibrium, workers receive the value of their marginal contribution to the production of goods and services

  17. Avatar Onwuachumba Chinenye Jessica says:

    Name: Onwuachumba Chinenye Jessica
    Reg no: 2021/246559
    Department: Combined Social Science( Economics/Sociology)

    1) Theory of utility:
    Utility theory is based on the fact that satisfaction which consumers derived from consumption of goods and services can be measure quantitatively.
    Utility is the amount of satisfaction a consumer derives from the consumption of goods and services at a particular time.
    2) The different views of utility according to the two schools of thoughts:
    There are basically two schools of thought in the analysis of utility and they are as follows:
    1.) Cardinal school of thought:
    2.) Ordinal school of thought.

    1.) CARDINAL SCHOOL OF THOUGHT: This approach emphasizes that utility is measurable, after consuming a given quantity of a commodity the consumer can simply evaluate his satisfaction through the use of figures which range from zero to infinity through imaginary units, known as “utils.”
    2.) THE ORDINAL SCHOOL OF THOUGHT: is based on the fact that the utility of a commodity cannot be measured in absolute quantity, but can be arranged in the order of preference.For example: Suppose a person prefers tea to coffee and coffee to milk. Hence, he or she can tell subjectively, his/her preferences, i.e. tea > coffee > milk.

    3.) The demand for and pricing of productive factors emphasizing on the labour market:
    When producing goods and services, businesses require labor and capital as inputs to their production process. The demand for labor is an economics principle derived from the demand for a firm’s output. That is, if demand for a firm’s output increases, the firm will demand more labor, thus hiring more staff. And if demand for the firm’s output of goods and services decreases, in turn, it will require less labor and its demand for labor will fall, and less staff will be retained.
    According to the law of diminishing marginal returns, by definition, in most sectors, eventually the MPL will decrease. Based on this law: as units of one input are added (with all other inputs held constant) a point will be reached where the resulting additions to output will begin to decrease; that is marginal product will decline.
    Another consideration is the marginal revenue product of labor (MRPL), which is the change in revenue that results from employing an additional unit of labor, holding all other inputs constant. According to economic theory, profit-maximizing firms will hire workers up to the point where the marginal revenue product is equal to the wage rate because it is not efficient for a firm to pay its workers more than it will earn in revenues from their labor.

  18. Avatar Ajah Helminna Sama says:

    Name: Ajah Helminna Sama
    Reg: 2021/243688
    Dept: Economics

    1. In economics, utility is a term used to determine the worth or value of a good or service. More specifically, utility is the total satisfaction or benefit derived from consuming a good or service. Economic theories based on rational choice usually assume that consumers will strive to maximize their utility.

    The economic utility of a good or service is important to understand because it directly influences the demand, and therefore price, of that good or service. In practice, a consumer’s utility is usually impossible to measure or quantify. However, some economists believe that they can indirectly estimate what is the utility of an economic good or service by employing various models.

    2 the two school of though of utility, is the Cardinal and ordinal Utility

    Cardinal Utility
    The notion of Cardinal utility was formulated by Neo-classical economists, who hold that utility is measurable and can be expressed quantitatively or cardinally, i.e. 1, 2, 3, and so on. The traditional economists developed the theory of consumption based on cardinal measurement of utility, for which they coined the term ‘Util ‘ expands to Units of utility. It is assumed that one util is equal to one unit of money, and there is the constant utility of money.
    Further, it has been realised with the passage of time that the cardinal measurement of utility is not possible, thus less realistic. There are many difficulties in measuring utility numerically, as the utility derived by the consumer from a good or service depends on a number of factors such as mood, interest, taste, preferences and much more.

    *Ordinal Utility
    Ordinal Utility is propounded by the modern economists, J.R. Hicks, and R.G.D. Allen, which states that it is not possible for consumers to express the satisfaction derived from a commodity in absolute or numerical terms. Modern Economists hold that utility being a psychological phenomenon, cannot be measured quantitatively, theoretically and conceptually. However, a person can introspectively express whether a good or service provides more, less or equal satisfaction when compared to one another.
    In this way, the measurement of utility is ordinal, i.e. qualitative, based on the ranking of preferences for commodities. For example: Suppose a person prefers tea to coffee and coffee to milk. Hence, he or she can tell subjectively, his/her preferences, i.e. tea > coffee > milk.

    3The demand for productive factors is not the same as that of consumer goods. The demand for factor is indirect. In other words the demand for factor is derived one. Factors help in producing consumer goods. If the demand for other goods rises, it will give rise to the demand for factors. Factors are employed more and more so long as their marginal productivity equal price. As the marginal productivity of a factor diminishes with every additional use, the producer will be prepared to offer lower price to the additional factors. For labour, the demand for labour goes along with the demand the goods, the higher the demand for goods and services, the higher the demand for labour, ceterus paribus.

  19. Avatar Egwuda Oluebube David says:

    Name: David Egwuda Oluebeube
    Reg Num: 2021/241318

    1.) ELEMENTARY THEORY OF UTILITY
    Utility refers to the ability of a given commodity to satisfy the wants of a consumers. The production any commodity is seen as incomplete until it reaches the final consumer and satisfies his/her wants. That is why production is often defined simply, as the production of utility.
    Utility is a very hard thing to measure. This is due different issues. One of which, is the fact that level of satisfaction is an abstract concept. Another issue is the fact that human beings don’t have homogeneous tastes and preferences. Therefore, the level of satisfaction a particular person derives a particular quantity of a particular commodity isn’t necessarily the same as that of another. In fact, the level of satisfaction a particular person derives from a particular quantity of a particular commodity at a particular time, isn’t necessarily the same as the level of satisfaction that same person derives from that quantity of that same commodity at another time.

    2A.) CARDINAL SCHOOL OF THOUGHT
    The cardinal school argues that utility is numerically measurable. That is to say that one’s level of satisfaction can be evaluated using numbers ranging from zero to infinity. The unit of measurement of utility for the cardinal school is called “util”.
    Assumptions of the Cardinal School
    When propounding theories in economics, one has to make some assumptions regarding certain factors or variables due to the constraints of the social sciences and the cardinal school of thought is no exception. Here are some assumptions made by the school:
    1.)The consumer is rational
    2.) The commodity is able to be divided into different units.
    3.) Utility is measurable
    4.) There is are levels of absolute satisfaction
    5.) The income of the consumer is constant. That is, it doesn’t change.

    2B.) ORDINAL SCHOOL OF THOUGHT
    In this school of thought, it is argues that the utility of various commodities cannot be measured. Rather, they are ranked in order of preference. This school of thought argues that utility is a purely psychological element and therefore, cannot be expressed with cardinal numbers.
    The ordinal school of thought is founded on the two main principles;
    I.) A consumer cannot express his/her utility in quantitative terms. Rather, they can express preference between two or more commodities.
    II.) Utility is a subjective concept. Therefore, the ranking of utility derived from multiple commodities is relative to each consumer.
    Assumptions of the Ordinal School of Thought
    Just like the cardinal school, the ordinal school’s approach is dependent on certain assumptions. Here are some of them;
    1.) The consumer is rational
    2.) The consumer is consistent in choice.
    3.) The consumer is insatiable
    4.) There is a diminishing marginal rate of substitution
    5.) There is transitivity of preference

    2.) THE DEMAND FOR AND PRICING OF PRODUCTIVE FACTORS
    Factors of production are demanded by firms so as to enable them produce the commodities for their businesses (ergo the demand for productive factors is a Derived Demand). Firms when acquiring factors of production have to make decisions on how much to spend on the productive factors, and how much or how many to obtain.
    Case Study: The Labour Market
    The labour market is quite simply the market where the services of labour are bought and sold. In this market, the employees are the suppliers, while the employers are the consumers.
    The conventional principles and conventions of demand and pricing are applied in the labour market. The lower the wage level, the higher the number of workers demanded. And of course the demand level is influenced by the level of expertise. level of education, etc. Also the wage level sometimes influenced by government policy. Government puts price floors for workers wages ( ie minimum wage). However, individual wages can sometimes be negotiated between the individual employee and the employer.

  20. Avatar Tse Mnedoo Rita says:

    Name: Tse Mnedoo Rita
    Reg No: 2021/241334
    Dept.: Economics
    1. Theory of consumer behaviour is also known as the theory of household behaviour. It is primarily concerned
    with how the consumer or household tries to satisfy his/her wants by didviding his/her limited amount of
    income between the various commodities that give him/her the amount of satisfaction. Utility therefore, is the
    ability of a commodity or service to satisfy a consumer’s wants. When a consumer derives satisfaction from
    the consumption of any commodity or service, it can be said that the commodity or service possesses utility.
    Utility is relative to a consumer, depending on the time, place, form, etc. A commodity that can satisfy a
    consumer’s want at a particular point in time and place may not satisfy another’s want. Utility then depends on
    the form of the commodity, individual’s time and place.

    2. The two schools of thought include:
    a. Cardinal school of thought
    b. Ordinal school of thought

    a. Cardinal school of thought: This approach emphasizes that utility is measurable. That is, after consuming a
    given quantity of a commodity, the consumer can simply evaluate his satisfaction through the use of figures
    which range from zero to infinity.
    Assumptions of the Cardinal Approach
    1. Utility is measurable.
    2. The consumer is rational.
    3. There is diminishing marginal utility.
    4. Total Utility (TU) depends on the quantity consumed.
    5. Money income of the consumer is held constant.

    b. Ordinal school of thought: This approach of utility analysis requires that the consumer should make a scale of
    preference and choose between the various commodities that give him the same level of satisfaction. the
    ordinal approach has some assumptions of which the greatest one is that utility is ordinal, which simply means
    that utility can be ranked at various levels of consumption.
    Important tools of Ordinal utility
    1. The concept of indifference curves.
    2. The slope of indifference curves (Marginal Rate of Substitution (MRS)).
    3. The budget line.

    3. The Demand for and Pricing of Productive Factors emphasizing on the Labour Market.
    If labour productivity increases, firms will demand more labour at each wage rate and the firm’s demand for
    labour itself will increase. This would shift the labour demand curve outwards.

  21. Avatar UMEHNWAFOR CHINALU CHIDALU says:

    NAME: UMEHNWAFOR CHINALU CHIDALU
    REGISTRATION NUMBER:2021/247834
    FACULTY: HEALTH SCIENCE AND TECHNOLOGY
    DEPARTMENT: NURSING SCIENCE.
    ECONOMICS ASSIGNMENT.
    1. Briefly discuss the elementary theory of utility.
    2.Mention and discuss the different views of utility according to the two school of thought which you have been taught.
    3.Explain the demand for and pricing of productive factors emphasizing on the labour market.
    SOLUTIONS TO ASSIGNMENT

    (1). THE ELEMENTARY THEORY OF UTILITY.
    In economics, utility is a term used to determine the worth or value of a good or service. More specifically, utility is the total satisfaction or benefit derived from consuming a good or service. Economic theories based on rational choice usually assume that consumers will strive to maximize their utility.
    The economic utility of a good or service is important to understand because it directly influences the demand, and therefore price, of that good or service. In practice, a consumer’s utility is usually impossible to measure or quantify. However, some economists believe that they can indirectly estimate what is the utility of an economic good or service by employing various models.
    Utility in economics is derived from the concept of usefulness. An economic good yields utility to the extent to which it’s useful for satisfying a consumer’s want or need.
    Various schools of thought differ as to how to model economic utility and measure the usefulness of a good or service.
    Utility in economics was first coined by the noted 18th-century Swiss mathematician Daniel Bernoulli. Since then, economic theory has progressed, leading to various types of economic utility.

    (2). THE DIFFERENT VIEWS OF UTILITY ACCORDING TO THE TWO SCHOOLS OF THOUGHT.
    The two schools of thought are:
    a. Cardinal school of thought.
    b. Ordinal School of thought.

    CARDINAL SCHOOL OF THOUGHT.
    Cardinal Utility is the idea that economic welfare can be directly observable and be given a value.
    For example, people may be able to express the utility that consumption gives for certain goods. For example, if a Nissan car gives 5,000 units of utility, a BMW car would give 8,000 units. This is important for welfare economics which tries to put values on consumption. For example, allocative efficiency is said to occur when Marginal cost = Marginal Utility.
    One way to try and put values on goods utility is to see what price they are willing to pay for a good.
    If we are willing to pay £5,000 for a second-hand Nissan Car, we can infer we must get 5,000 utils. In other words, the value of cardinal utility is related to the price we are willing to pay.
    The idea of cardinal utility is important to rational choice theory.

    ORDINAL SCHOOL OF THOUGHT.
    In ordinal utility, the consumer only ranks choices in terms of preference but we do not give exact numerical figures for utility.
    For example, we prefer a BMW car to a Nissan car, but we don’t say by how much.
    It is argued this is more relevant in the real world. When deciding where to go for lunch, we may just decide I prefer an Italian restaurant to Chinese. We don’t calculate the exact levels of utility.

    (3). THE DEMAND FOR AND PRICING OF PRODUCTIVE FACTORS EMPHASIZING ON THE LABOUR MARKET.
    Demand for labor increases as wages fall. And vice versa, demand falls as wages rise. As a result, the labor demand curve has a downward slope (negative slope).
    The law of diminishing marginal return explains the negative slope of the labor demand curve. The law says, when a company employs more workers, each additional worker contributes less to output. Because additional workers contribute less to additional output, businesses are willing to increase the workforce only when wages fall.
    The change in the wage rate causes the labor demanded to move along the curve. Meanwhile, changes in factors other than wages shift the curve to the right or left. Such factors include:
    (a).Changes in production level, in the aggregate, it is measured by economic growth.
    (b).Changes in production processes and technological advances
    (c).Quality of human resources
    (d).Number of companies in the market
    (e).Government regulations such as local labor recruitment and wage policy.
    The demand for labor depends on factors such as:
    A).Business profits are usually related to the conditions of the business cycle. The demand for labor decreases during an economic recession. In this period, business profits fall because aggregate demand decreases. Businesses stop hiring and choose to rationalize workers as they cut production. Conversely, the demand for labor increases during economic expansion.
    B).Minimum wages. Some companies offer low wages to support low operating costs. But, because the government imposes a minimum wage, they cannot do it. Hence, the minimum wage limits their demand to recruit workers.
    C).Wage subsidies. For example, the government provides incentives or wage subsidies for companies that employ or retain older workers. The purpose of subsidies is to compensate for the gap between wages and productivity of older workers.
    D).Policy on the recruitment of local labor. It affects demand because it reduces the flexibility of firms in choosing workers.
    E). Production processes and technological advances. Automation, for example, reduces the need for labor to operate production machines.
    F).Quality of human resources. Some jobs require more professional qualifications, so when the quality of local human resources does not meet the criteria, domestic labor demand is also low.
    G).Number of companies. More companies mean more demand for labor.

  22. Avatar Ugwoke Richard Nwachukwu: reg no: 2021/242818 says:

    THE ELEMENTARY THEORY OF UTILITY
    In Economics, utility is a term used to determine the worth or value of a good or service. More specifically, utility is the total satisfaction or benefit derived from consuming a good or service. Economic theories based on rational choices usually assume that consumer will strive to maximize their utility.
    The economic utility of a good or service is important to understand because it directly influences the demand, and therefore price, of that good or service.

    DIFFERENT VIEWS OF UTILITY BY THE TWO SCHOOLS OF THOUGHT

    (1) CARDINAL SCHOOL OF THOUGHT: This school of thought argues that the utility of a commodity can be measured. Some of the economists who belong to this school of thought argue that utility can be measured subjectively in unit called ‘utils’. Others suggest that utility can be measured in monetary units by relating to the amount of money which the consumer is willing to pay for a given quantity of a commodity at a particular time.

    THE ORDINAL SCHOOL OF THOUGHT: The economists who belong to this school of thought argue that it is not possible to measure utility(satisfaction). They opine that although utility cannot be precisely measured, it is possible for a consumer to make a choice between various bundles of commodity by ranking them according to the level of satisfaction expected from each bundle without specifying exact units of utility.

    THE DEMAND FOR AND PRICING OF PRODUCTIVE FACTORS WITH EMPHASIS ON THE LABOUR MARKET

    The modem theory of pricing of factors of production also known as”demand and supply theory” gives a satisfactory answer to determining factor prices. According to the theory, just as the price of a commodity which is determined by the forces of demand and supply, similarly the price of a factor of production is also determined by the demand for that factor and it’s supply. The demand for a factor is not a direct demand but an indirect or derived demand. For example, the demand for labour is not a demand for labour himself, it is in fact, demand for goods or services which the labour produces. Thus when demand for goods and services increases, the demand for the factor(labour) which produces those goods and services would increase also. If demand for goods and services is elastic, the demand for the factors would also be elastic and vice versa.

  23. Avatar Nzenwa Ngozi Beatrice says:

    Name: Nzenwa Ngozi Beatrice
    Reg No: 2018/249548
    Department: Social Science Education
    Unit: Economics and Education
    Email: paulbeatrice3417@gmail.com

    1. The elementary theory of utility is a fundamental concept in microeconomics that explains how individuals make decisions based on their preferences and limited resources. According to this theory, individuals seek to maximize their utility, which refers to the satisfaction or happiness they derive from consuming goods and services. Utility is subjective and varies from person to person, making it difficult to measure objectively. However, economists assume that individuals have consistent preferences and behave rationally when making choices, meaning they try to get the most utility from their available resources. The law of diminishing marginal utility states that as an individual consumes more of a good, the additional satisfaction or utility they derive from each additional unit decreases.

    2. The two main schools of thought on utility are the classical and neoclassical schools. The classical school, which includes economists such as Adam Smith and David Ricardo, believed that utility was objective and measurable, and that it was derived from the labor that went into producing a good. According to this view, the value of a good depended on the amount of labor required to produce it. In contrast, the neoclassical school, which includes economists such as Alfred Marshall and Leon Walras, rejected the idea of objective utility and instead focused on the subjective nature of utility. Neoclassical economists argued that utility was determined by an individual’s preferences and that prices were determined by the interaction of supply and demand in a competitive market.

    3. The demand for productive factors, including labor, is determined by the marginal productivity of each factor, which is the additional output that is produced when one unit of the factor is added. As the price of a factor increases, firms will hire less of that factor, and as the price decreases, they will hire more. In the labor market, the demand for labor is influenced by the marginal productivity of each worker, which depends on their skills, education, and experience. The pricing of productive factors, including labor, is determined by the interaction of supply and demand in a competitive market. The wage rate for labor is determined by the equilibrium point where the supply of labor and the demand for labor intersect.

    References:
    Mankiw, N. G. (2014). Principles of microeconomics. Cengage Learning.
    Samuelson, P. A., & Nordhaus, W. D. (2017). Economics. McGraw-Hill Education.

  24. Avatar Onuigbo Princess Chidera.L. Reg Number: 2018/248986 Department: Philosophy says:

    1. Briefly discuss the elementary theory of utility.
    2.Mention and discuss the different views of utility according to the two school of thought which you have been taught.
    3.Explain the demand for and pricing of productive factors emphasizing on the labour market.

    THE ELEMENTARY THEORY OF UTILITY
    In economics, it tries to explain the behaviour of individuals consumers in an economy. Utility theory argues that each person, given a list of options can rank those options in a precise order of preference. Each person has different choices which are set, not changing overtime.
    Utility theory explains why consumers behave the way they do and make the purchases they make.

    2. THE DIFFERENT VIEWS OF UTILITY ACCORDING TO THE TWO SCHOOLS OF THOUGHTS
    The two approaches of school of thought;
    1. Cardinal approach
    2. Ordinal approach

    CARDINAL
    This emphasizes that utility is measurable i.e After consuming a given quantity of a commodity the consumer can simply evaluate his satisfaction through the use of figures which range from zero to infinity.

    ORDINAL
    This states that it is not possible for consumers to express the satisfaction derived from a commodity in absolute or numerical terms.

    3. THE DEMAND AND PRICING OF PRODUCTIVE FACTORS EMPHASIZING ON THE LABOUR MARKET

    A.LABOUR PRODUCTIVITY
    If labour productivity increases, firms will demand more labour at each wage rate and the firm’s demand for labour itself will increase. This would shift the labour demand curve outwards.

    B.CHANGES IN TECHNOLOGY
    Changes in technology can cause the demand for labour to increase and decrease depending on the situation.
    If technological changes make labour more productive relative to the other factors of production (such as capital), firms would demand an increased amount of workers and substitute the other factors of production with new labour.

    C. CHANGES IN THE NUMBER OF FIRMS
    Changes in the number of firms operating in the industry can have an immense effect on the overall labour market. This is because demand for a certain factor can be determined by the number of firms currently utilising that factor.

  25. Ekpo munachimso praise
    2021/241315
    Economics
    Faculty of social sciences
    1)Utility is an economic term that measures the total value or satisfaction that a consumer derives from purchasing and using a service or product.In economics, utility theory tries to explain the behavior of individual consumers in an economy. Utility theory argues that each person, given a list of options, can rank those options in a precise order of preference. Each person has different choices which are set, not changing over time.
    2) The types of utility includes,
    a ordinal utility
    b cardinal Utility
    * Ordinal Utility states that the satisfaction a consumer gets after consuming a good or service cannot be scaled in numbers, whereas, these things can be arranged in the order of preference.while in cardinal Utility, the utility can be expressed similarly to how weight and height are expressed
    3)Demand for labor is a concept that describes the amount of demand for labor that an economy or firm is willing to employ at a given point in time. This demand may not necessarily be in long-run equilibrium. It is determined by the real wage firms are willing to pay for this labor and the number of workers willing to supply labor at that wage.
    modem theory states that, the price of a factor of production is determined at a point where the demand and supply curves of the factor intersect each other.
    According to the theory just as the price of a commodity which is determined by the forces of demand & supply, similarly the price of a factor of production is also determined by the demand for that factor and its supply.

    Demandermined at a point where the demand and supply curves of the factor intersect each other.

  26. Avatar Bankole Elijah Oladimeji Reg NO; 10357092FF Public Administration and Local Government says:

    The term was introduced initially as a measure of pleasure or happiness as part of the theory of utilitarianism by moral philosophers such as Jeremy Bentham and John Stuart Mill.
    Utility theory argues that each person, given a list of options, can rank those options in a precise order of preference. In economics, utility theory governs individual decision-making. Utility theory is a preference-based approach that provides a rank ordering of choices.
    The theory of utility can also be defined as the satisfaction derived from the consumption of a given commodity. Hence, when a consumer derives satisfaction from the consumption of a commodity, it can be said that the commodity or service possesses utility.
    2. There are basically two schools of thought in the analysis of utility and they are as follows:
    a. Cardinal school of thought
    b. Ordinal school of thought.
    A. CARDINAL SCHOOL OF THOUGHT: This approach emphasizes that utility is measurable. It also postulates that utility is measurable, the cardinal utility also states that the level of satisfaction a consumer acquires after consuming any goods and services can be measurable and expressed in quantitative numbers.
    For example; Pizza gives Sam 60 utils of satisfaction, whereas burger gives him only 40 utils. The utility is measured in UTILS
    B. ORDINAL SCHOOL OF THOUGHT: This approach emphasizes that utility is not measurable numerically against the cardinal theory. The Ordinal Utility approach is based on the fact that the utility of a commodity cannot be measured in absolute quantity, but however, it will be possible for a consumer to tell subjectively whether the commodity derives more or less equal satisfaction when compared to another.
    Modern economists have discarded the concept of cardinal utility and instead applied the ordinal utility approach to study the behavior of consumers. While neo-classical economists believed that utility can be measured and expressed in cardinal numbers, modern economists maintain that utility being a psychological phenomenon cannot be measured theoretically, quantitatively, and even cardinally. Modern economists have applied the ordinal utility concept to study consumer behavior. He introduced a tool of analysis called the “Indifference Curve” to analyze consumer behavior. An indifference curve refers to the locus of points each showing different combinations of two substitutes that yield the same level of satisfaction and utility to the consumer. For example; Sam gets more satisfaction from a pizza as compared to that a burger. The utility is ranked based on satisfaction.
    3. Demand for labor is a concept that describes the amount of demand for labor that an economy or firm is willing to employ at a given point in time. This demand may not necessarily be in long-run equilibrium. It is determined by the real wage firms are willing to pay for this labor and the number of workers willing to supply labor at that wage.
    A profit-maximizing entity will command additional units of labor according to the marginal decision rule: If the extra output that is produced by hiring one more unit of labor adds more to total revenue than it adds to the total cost, the firm will increase profit by increasing its use of labor. It will continue to hire more and more labor up to the point that the extra revenue generated by the additional labor no longer exceeds the extra cost of the labor. This relationship is also called the marginal product of labor (MPL) in the economics community.

  27. Avatar Bankole Elijah Oladimeji says:

    1. As a topic of economics, utility is used to model worth or value. The term was introduced initially as a measure of pleasure or happiness as part of the theory of utilitarianism by moral philosophers such as Jeremy Bentham and John Stuart Mill.
    Utility theory argues that each person, given a list of options, can rank those options in a precise order of preference. In economics, utility theory governs individual decision-making. Utility theory is a preference-based approach that provides a rank ordering of choices.
    The theory of utility can also be defined as the satisfaction derived from the consumption of a given commodity. Hence, when a consumer derives satisfaction from the consumption of a commodity, it can be said that the commodity or service possesses utility.
    2. There are basically two schools of thought in the analysis of utility and they are as follows:
    a. Cardinal school of thought
    b. Ordinal school of thought.
    A. CARDINAL SCHOOL OF THOUGHT: This approach emphasizes that utility is measurable. It also postulates that utility is measurable, the cardinal utility also states that the level of satisfaction a consumer acquires after consuming any goods and services can be measurable and expressed in quantitative numbers.
    For example; Pizza gives Sam 60 utils of satisfaction, whereas burger gives him only 40 utils.The utility is measured in UTILS
    B. ORDINAL SCHOOL OF THOUGHT: This approach emphasizes that utility is not measurable numerically against the cardinal theory. The Ordinal Utility approach is based on the fact that the utility of a commodity cannot be measured in absolute quantity, but however, it will be possible for a consumer to tell subjectively whether the commodity derives more or less equal satisfaction when compared to another.
    Modern economists have discarded the concept of cardinal utility and instead applied the ordinal utility approach to study the behavior of consumers. While neo-classical economists believed that utility can be measured and expressed in cardinal numbers, modern economists maintain that utility being a psychological phenomenon cannot be measured theoretically, quantitatively, and even cardinally. Modern economists have applied the ordinal utility concept to study consumer behavior. He introduced a tool of analysis called the “Indifference Curve” to analyze consumer behavior. An indifference curve refers to the locus of points each showing different combinations of two substitutes that yield the same level of satisfaction and utility to the consumer. For example; Sam gets more satisfaction from a pizza as compared to that of a burger. The utility is ranked based on satisfaction.
    3. Demand for labor is a concept that describes the amount of demand for labor that an economy or firm is willing to employ at a given point in time. This demand may not necessarily be in long-run equilibrium. It is determined by the real wage firms are willing to pay for this labor and the number of workers willing to supply labor at that wage.
    A profit-maximizing entity will command additional units of labor according to the marginal decision rule: If the extra output that is produced by hiring one more unit of labor adds more to total revenue than it adds to the total cost, the firm will increase profit by increasing its use of labor. It will continue to hire more and more labor up to the point that the extra revenue generated by the additional labor no longer exceeds the extra cost of the labor. This relationship is also called the marginal product of labor (MPL) in the economics community.

  28. Avatar Ezeaku Amaka Henrietta says:

    Ezeaku Amaka Henrietta
    2020/244510
    Eco 101 assignment

    1. Utility theory explains individuals’ choices and measures their level of satisfaction from consuming a good or service. The level of satisfaction is measured in units called ‘utils.’

    Therefore, the subjective concept of utility is used for consumer analysis. There are two types of utility, namely, total utility and marginal utility.
    1. Total Utility:
    Total Utility (TU) implies overall level of satisfaction derived from a good by a consumer. In other words, TU can be defined as an aggregate sum of satisfaction that a consumer receives from consuming a specified amount of good or service in an economy. The amount of a consumer’s TU corresponds to the consumer’s level of consumption.
    Suppose a consumer three units of a chocolate A and derives utility from them as U1, U2 and U3. In such a case, TU from chocolate A would be:
    UA = U1 + U2 + U3
    If a consumer consumes n number of chocolates (a, b, c…), then
    2. Marginal Utility:
    In economics terms, Marginal Utility (MU) can be defined as additional utility gained from the consumption of an additional unit of a good. In other words, MU implies the utility derived from additional unit consumed.
    The formula for MU is:
    MUA = ∆TUA/∆QA
    Where
    ∆TUA = Change in TU
    ∆QA = Change in quantity consumed
    Another formula for MU is:
    MUn = TUn – TUn-1

    2. Views of utility
     
    1. Cardinal approach and
    2. Ordinal approach
     
    CARDINAL UTILITY THEORY
     
    Cardinal utility theory is anchored on cardinal measurement of utility which assumes that utility is measurable and additive. The theory submits that, a consumer has the capacity to measure the extent or level of satisfaction that he or she derives from the consumption of a given quantity of a commodity. This theory was developed by neo-classical school of thought. The fundamental belief of this school of thought is that utility can be measured. They also believed that utility is additive and can be quantified numerically using measurement parameter called utils.
     
    Assumptions of Cardinal Utility Theory:
     
    The basic assumptions or premises of cardinal utility analysis are as follows
     

    i. Utility is measurable
    ii.          The consumer is rational
    iii.         There is diminishing marginal utility
    iv.         Total utility (TU) depends on the quantity consumed.
    v.         Money income of the consumer is held constant

    Ordinal Utility

    It explains that the satisfaction level after consuming any goods or services cannot be scaled in numbers. However, these things can be arranged in the order of preference.

    Example: Sam gets more satisfaction from a pizza as compared to that of a burger.

    Utility is ranked based on satisfaction. It is more practical and sensible. This theory was applied by Prof. J R Hicks

    • Avatar Dominic Treasure Chinenye says:

      NAME: DOMINIC TREASURE
      REG NO: 2021/243533

      1. Utility theory in economics pertains to the value or worth of a certain good, service or item. It suggests that goods, services and items can be ranked according to their usefulness. The premise was initially theorised by Swiss mathematician, Daniel Bernoulli in the 18th century. He founded the idea with regard to the different values of things. With respect to the theory, the utility of an item tends to be closely correlated to it’s price. For example, an item such as gold, which is very useful and thus has great utility (combined with its scarcity ) is very expensive.

      2. CARDINAL SCHOOL OF THOUGHT
      This is a quantitative approach to measuring utility. It presents the utility of something as a fixed number. It is an exact measure of utility. An individual can rank goods or services according to their cardinal utility by comparing the utility numbers derived from the goods or services. For example, a bunch of 20 bananas can be said to have a cardinal utility of 20, whereas a bunch of 10 bananas can be said to have a cardinal utility of 10 utils.
      ORDINAL SCHOOL OF THOUGHT
      This is a relative measure of utility. It describes how one can determine the value of a good or service by comparing it to another. It also means ranking otems under consideration from most satisfying to the least. Many economists believe that consumers do this in their heads when they make purchase decisions. This measurement only captures which good or services is better and not how much better it is. Customers might assign value to goods or services according to ordinal utility. For example, a man asks his friend which one of two local barbershop is better. His friend tells his barber B is better because his skills are more refined. This is a relative measure as one can’t quantitatively measure how much better the one barber cuts hair compared to the other.

      3. THE LABOUR MARKET
      The demand for labour is a concept that illustrates the amount of labour a firm is willing to employ at a particular wage rate. The demand for labour shows how many workers an employer is willing and able to hire at a given wage rate at any time.
      The labour demand curve shows an inverse relationship between the employment level and the wage rate. It means that if the wage rate increases, employment level will reduce and vice versa (all things being equal)
      If a firms profitability increases, it will be able to hire more workers. This will lead to an crease in the demand for labour. Conversely, a firm that is making no profit and is consistently resisting losses will need to lay off workers as it will not be able to pay them anymore. This will subsequently reduce the demand for labour and shift the demand curve of labour inwards. A firm will demand for the labour only if an increase in the labour force will guarantee to bring in more profit.

  29. Avatar Okenwa Grace amarachi says:

    Name:okenwa Grace amarachi .Regnumber 2021/244145 course Eco 101
    department public administration and local
    faculty social science
    1.The term utility defined as satisfaction a consumer drive from consuming a particular products
    2.school economics
    a.cardinal school of thought:this school of thought believe that utility can be measured in number ranging from 0_infinity.it is measured with util
    b.ordinard school of thought says that utility can be ranked.
    3.when producing good and service business required labour and capitals input to their production process.The demand for the labour is an economics principles derived form the demand for a firms output. That is if demand for a firms output increase firm will demand more labour,thus hiring more staff.Demand for labour is a concept that describe the amount of demand for labour that amount of demand for labour that economy or firm is willing to employ at a given point in the time.This demand may not necessarily be in long_run equilibrium.
    changes in the marginal productivity of labour such as technology advance brought on by comp uputer.changes in the price of an entitys output, usually from an entity charging more for their products.

  30. Avatar Agboeze Amarachukwu Success says:

    NAME: AGBOEZE AMARACHUKWU SUCCESS
    REG. NO: 2018/247084

    1) Briefly discuss the elementary theory of utility.
    Utility theory is based on the fact that satisfaction which consumers derived from consumption of goods and services can be measured quantitative

    2) Mention and discuss the different views of utility according to the two schools of thoughts which you have been taught.
    We have two predominant schools of thought of utility and they are Cardinal utility and Ordinal utility
    The Cardinal utility believes in measuring the satisfaction level in utility while the Ordinal utility believes that the satisfaction level cannot be evaluated; however, it can be levelled

    3) Explain the demand for and pricing of productive factors emphasizing on the labour market.
    The demand for labour shows how many workers the firms are willing and able to hire at a given wage rate at a given time. Labour demand is derived from the demand for a product or a service that labour produces.

  31. Avatar Agboeze Amarachukwu Success says:

    1) Briefly discuss the elementary theory of utility.
    Utility theory is based on the fact that satisfaction which consumers derived from consumption of goods and services can be measured quantitative

    2) Mention and discuss the different views of utility according to the two schools of thoughts which you have been taught.
    We have two predominant schools of thought of utility and they are Cardinal utility and Ordinal utility
    The Cardinal utility believes in measuring the satisfaction level in utility while the Ordinal utility believes that the satisfaction level cannot be evaluated; however, it can be levelled

    3) Explain the demand for and pricing of productive factors emphasizing on the labour market.
    The demand for labour shows how many workers the firms are willing and able to hire at a given wage rate at a given time. Labour demand is derived from the demand for a product or a service that labour produces.

  32. Avatar Mmesomachukwu Mercy Okoli says:

    1) Utility theory bases its beliefs upon individuals’ preferences. It is a theory suggested in economics to explain behavior of individuals based on the premise people can consistently rank order their choices depending upon their preferences. Each individual will show different preferences, which appear to be hard-wired within each individual. We can thus state that individuals’ preferences are inherent. Any theory, which proposes to capture preferences, is, by necessity, abstraction based on certain assumptions. Utility theory is a positive theory that seeks to explain the individuals’ observed behavior and choices.
    Utility theory in economics is relate to the value or worth of a certain good, service, or item. It suggests that goods, services, and items can be ranked according to their usefulness.

    2) Ordinal Utility
    Cardinal Utility.

    The Ordinal Utility approach is based on the fact that the utility of a commodity cannot be measured in absolute quantity, but however, it will be possible for a consumer to tell subjectively whether the commodity obtain more or less or equal satisfaction when compared to another.
    In economics, an ordinal utility function is a function representing the preferences of an agent on an ordinal scale. Ordinal utility theory claims that it is only meaningful to ask which option is better than the other, but it is meaningless to ask how much better it is or how good it is.
    Ordinal utility just ranks in terms of preference.

    Cardinal Utility is the idea that economic welfare can be directly observable and be given a value,that is cardinal utility gives a value of utility to different options.
    For example, people may be able to express the utility that consumption gives for certain goods. For example, if Ovaltine gives 500 units of utility, bornvita would give 800 units. This is important for welfare economics which tries to put values on consumption.

    3) Demand for labor is a concept that describes the amount of demand for labor that an economy or firm is willing to employ at a given point in time. This demand may not necessarily be in long-run equilibrium. It is fixed by the real wage firms are willing to pay for this labor and the number of workers willing to supply labor at that wage.

    A profit-maximizing entity will command additional units of labor according to the marginal decision rule: If the extra output that is produced by hiring one more unit of labor adds more to total revenue than it adds to the total cost, the firm will increase profit by increasing its use of labor. It will continue to hire more and more labor up to the point that the extra revenue generated by the additional labor no longer exceeds the extra cost of the labor.

    Mmesomachukwu Mercy Okoli
    PALG
    Eco 101 Assignment
    2020/252073

  33. Avatar ABUAH ELIZABETH UJUNWA says:

    NAME: Abuah Elizabeth Ujunwa
    REG NO: 2020/249038

    1. In economics, utility theory governs individual decision making. The student must understand an intuitive explanation for the assumptions: completeness, monotonicity, mix-is-better, and rationality (also called transitivity).
    Utility theory bases its beliefs upon individuals’ preferences. It is a theory postulated in economics to explain behavior of individuals based on the premise people can consistently rank order their choices depending upon their preferences. Each individual will show different preferences, which appear to be hard-wired within each individual. We can thus state that individuals’ preferences are intrinsic. Any theory, which proposes to capture preferences, is, by necessity, abstraction based on certain assumptions. Utility theory is a positive theory that seeks to explain the individuals’ observed behavior and choices.The distinction between normative and positive aspects of a theory is very important in the discipline of economics. Some people argue that economic theories should be normative, which means they should be prescriptive and tell people what to do. Others argue, often successfully, that economic theories are designed to be explanations of observed behavior of agents in the market, hence positive in that sense. This contrasts with a normative theory, one that dictates that people should behave in the manner prescribed by it. Instead, it is only since the theory itself is positive, after observing the choices that individuals make, we can draw inferences about their preferences. When we place certain restrictions on those preferences, we can represent them analytically using a utility function—a mathematical formulation that ranks the preferences of the individual in terms of satisfaction different consumption bundles provide. Thus, under the assumptions of utility theory, we can assume that people behaved as if they had a utility function and acted according to it. Therefore, the fact that a person does not know his/her utility function, or even denies its existence, does not contradict the theory. Economists have used experiments to decipher individuals’ utility functions and the behavior that underlies individuals’ utility.

    2. Ordinal Utility

    Early economists of the Spanish Scholastic tradition of the 1300s and 1400s described the economic value of goods as deriving directly from this property of usefulness and based their theories on prices and monetary exchanges.

    This conception of utility was not quantified, but a qualitative property of an economic good. Later economists, particularly those of the Austrian School, developed this idea into an ordinal theory of utility, or the idea that individuals could order or rank the usefulness of various discrete units of economic goods

    Cardinal Utility:
    To Bernoulli and other economists, utility is modeled as a quantifiable or cardinal property of the economic goods that a person consumes.To help with this quantitative measurement of satisfaction, economists assume a unit known as a “util” to represent the amount of psychological satisfaction a specific good or service generates for a subset of people in various situations. The concept of a measurable util makes it possible to treat economic theory and relationships using mathematical symbols and calculations.
    Total Utility:
    If utility in economics is cardinal and measurable, the total utility (TU) is defined as the sum of the satisfaction that a person can receive from the consumption of all units of a specific product or service.Using the example above, if a person can only consume three slices of pizza and the first slice of pizza consumed yields ten utils, the second slice of pizza consumed yields eight utils, and the third slice yields two utils, the total utility of pizza would be twenty utils.
    Marginal Utility

    Marginal utility (MU) is defined as the additional (cardinal) utility gained from the consumption of one additional unit of a good or service or the additional (ordinal) use that a person has for an additional unit.1

    Using the same example, if the economic utility of the first slice of pizza is ten utils and the utility of the second slice is eight utils, the MU of eating the second slice is eight utils. If the utility of a third slice is two utils, the MU of eating that third slice is two utils.

    3. The demand for labor is an economics principle derived from the demand for a firm’s output. That is, if demand for a firm’s output increases, the firm will demand more labor, thus hiring more staff. And if demand for the firm’s output of goods and services decreases, in turn, it will require less labor and its demand for labor will fall, and less staff will be retained.

    Labor market factors drive the supply and demand for labor. Those seeking employment will supply their labor in exchange for wages. Businesses demanding labor from workers will pay for their time and skills.
    Changes in the marginal productivity of labor, such as technological advances brought on by computers

    Changes in the prices of other factors of production, including shifts in the relative prices of labor and capital stock

    Changes in the price of an entity’s output, usually from an entity charging more for their product or service

    Changes in the marginal productivity of labor, such as technological advances brought on by computers

    Changes in the prices of other factors of production, including shifts in the relative prices of labor and capital stock

    Changes in the price of an entity’s output, usually from an entity charging more for their product or service

    Changes in the marginal productivity of labor, such as technological advances brought on by computers

    Changes in the prices of other factors of production, including shifts in the relative prices of labor and capital stock

    Changes in the price of an entity’s output, usually from an entity charging more for their product or service

  34. Avatar Chimezie temple chimerie says:

    Name; Chimezie Temple Chimereze
    Reg No:10844834HE

    1: The Concept of Utility Theory Utility theory is based on the fact that satisfaction which consumers derived from consumption of goods and services can be measure quantitative.

    2: However, cardinal utility and ordinal utility are the two predominant theories of utility. The cardinal utility believes in measuring the satisfaction level in utils and the ordinal utility believes that the satisfaction level cannot be evaluated; however, it can be levelled.

    3: According to the law of diminishing marginal returns, by definition, in most sectors, eventually the MPL will decrease. Based on this law: as units of one input are added (with all other inputs held constant) a point will be reached where the resulting additions to output will begin to decrease; that is marginal product will decline.

    Another consideration is the marginal revenue product of labor (MRPL), which is the change in revenue that results from employing an additional unit of labor, holding all other inputs constant. This can be used to determine the optimal number of workers to employ at a given market wage rate. According to economic theory, profit-maximizing firms will hire workers up to the point where the marginal revenue product is equal to the wage rate because it is not efficient for a firm to pay its workers more than it will earn in revenues from their labor.

    Common Reasons for a Shift in Labor Demand

    Changes in the marginal productivity of labor, such as technological advances brought on by computersChanges in the prices of other factors of production, including shifts in the relative prices of labor and capital stockChanges in the price of an entity’s output, usually from an entity charging more for their product or service

  35. Avatar Obinna Comfort Akunna says:

    Name: Obinna Comfort Akunna
    Reg no; 2021/246205
    Email; obinnaakunnacomfort@gmail.com

    1)Utility theory bases its beliefs upon individuals’ preferences. It is a theory postulated in economics to explain behavior of individuals based on the premise people can consistently rank order their choices depending upon their preferences. Also utility theory tries to explain the behavior of individual consumers in an economy. Utility theory argues that each person, given a list of options, can rank those options in a precise order of preference. Each person has different choices which are set, not changing over time

    2) CARDINAL SCHOOL OF THOUGHT: This approach emphasizes that utility is measurable. That is, after consuming a given quantity of a commodity the consumer can simply evaluate his satisfaction through the use of figures which range from zero to infinity.

    ASSUMPTIONS OF CARDINAL APPROACH
    i) Utility is measurable
    ii)The consumer is rational
    iii) Money income of the consumer is held constant

    2b) Ordinal Utility states that the satisfaction a consumer gets after consuming a good or service cannot be scaled in numbers, whereas, these things can be arranged in the order of preference. According to the ordinal approach, utility is a psychological phenomenon like happiness, satisfaction, and welfare.

    Apart from showing a mathematical function, a consumer’s preference can be demonstrated graphically through indifference curves. It becomes easy when there are two types of commodities x and y. Each indifference curve provides coordinates (x,y) when (x1, y1) and (x2, y2) lie on the same curve line and (x1, y1) ~ (x2, y2). This is an example of an indifference curve map where the preference of goods are shown but not their quantity.

    3) Demand for labor means producing goods and services, businesses require labor and capital as inputs to their production process. The demand for labor is an economics principle derived from the demand for a firm’s output.

    Pricing in demand for labour productivity increases, firms will demand more labour at each wage rate and the firm’s demand for labour itself will increase. This would shift the labour demand curve outwards

    The demand for labor is an economics principle derived from the demand for a firm’s output. That is, if demand for a firm’s output increases, the firm will demand more labor, thus hiring more staff.

    factors affecting labour as a factor of production
    Pay and remuneration; Working conditions; Human capital, skills, experience and education and training levels; Occupational and geographical mobility of labour

  36. Avatar Abuah Jessica onyinye says:

    1. In economics, utility theory governs individual decision making. The student must understand an intuitive explanation for the assumptions: completeness, monotonicity, mix-is-better, and rationality (also called transitivity).

    Utility theory bases its beliefs upon individuals’ preferences. It is a theory postulated in economics to explain behavior of individuals based on the premise people can consistently rank order their choices depending upon their preferences. Each individual will show different preferences, which appear to be hard-wired within each individual. We can thus state that individuals’ preferences are intrinsic. Any theory, which proposes to capture preferences, is, by necessity, abstraction based on certain assumptions. Utility theory is a positive theory that seeks to explain the individuals’ observed behavior and choices.The distinction between normative and positive aspects of a theory is very important in the discipline of economics. Some people argue that economic theories should be normative, which means they should be prescriptive and tell people what to do. Others argue, often successfully, that economic theories are designed to be explanations of observed behavior of agents in the market, hence positive in that sense. This contrasts with a normative theory, one that dictates that people should behave in the manner prescribed by it. Instead, it is only since the theory itself is positive, after observing the choices that individuals make, we can draw inferences about their preferences. When we place certain restrictions on those preferences, we can represent them analytically using a utility function—a mathematical formulation that ranks the preferences of the individual in terms of satisfaction different consumption bundles provide. Thus, under the assumptions of utility theory, we can assume that people behaved as if they had a utility function and acted according to it. Therefore, the fact that a person does not know his/her utility function, or even denies its existence, does not contradict the theory. Economists have used experiments to decipher individuals’ utility functions and the behavior that underlies individuals’ utility.

    2. Ordinal Utility

    Early economists of the Spanish Scholastic tradition of the 1300s and 1400s described the economic value of goods as deriving directly from this property of usefulness and based their theories on prices and monetary exchanges.

    This conception of utility was not quantified, but a qualitative property of an economic good. Later economists, particularly those of the Austrian School, developed this idea into an ordinal theory of utility, or the idea that individuals could order or rank the usefulness of various discrete units of economic goods

    Cardinal Utility

    To Bernoulli and other economists, utility is modeled as a quantifiable or cardinal property of the economic goods that a person consumes.To help with this quantitative measurement of satisfaction, economists assume a unit known as a “util” to represent the amount of psychological satisfaction a specific good or service generates for a subset of people in various situations. The concept of a measurable util makes it possible to treat economic theory and relationships using mathematical symbols and calculations.
    Total Utility

    If utility in economics is cardinal and measurable, the total utility (TU) is defined as the sum of the satisfaction that a person can receive from the consumption of all units of a specific product or service.Using the example above, if a person can only consume three slices of pizza and the first slice of pizza consumed yields ten utils, the second slice of pizza consumed yields eight utils, and the third slice yields two utils, the total utility of pizza would be twenty utils.
    Marginal Utility

    Marginal utility (MU) is defined as the additional (cardinal) utility gained from the consumption of one additional unit of a good or service or the additional (ordinal) use that a person has for an additional unit.1

    Using the same example, if the economic utility of the first slice of pizza is ten utils and the utility of the second slice is eight utils, the MU of eating the second slice is eight utils. If the utility of a third slice is two utils, the MU of eating that third slice is two utils.

    3. The demand for labor is an economics principle derived from the demand for a firm’s output. That is, if demand for a firm’s output increases, the firm will demand more labor, thus hiring more staff. And if demand for the firm’s output of goods and services decreases, in turn, it will require less labor and its demand for labor will fall, and less staff will be retained.

    Labor market factors drive the supply and demand for labor. Those seeking employment will supply their labor in exchange for wages. Businesses demanding labor from workers will pay for their time and skills.
    Changes in the marginal productivity of labor, such as technological advances brought on by computers

    Changes in the prices of other factors of production, including shifts in the relative prices of labor and capital stock

    Changes in the price of an entity’s output, usually from an entity charging more for their product or service

    Changes in the marginal productivity of labor, such as technological advances brought on by computers

    Changes in the prices of other factors of production, including shifts in the relative prices of labor and capital stock

    Changes in the price of an entity’s output, usually from an entity charging more for their product or service

    Changes in the marginal productivity of labor, such as technological advances brought on by computers

    Changes in the prices of other factors of production, including shifts in the relative prices of labor and capital stock

    Changes in the price of an entity’s output, usually from an entity charging more for their product or service

  37. NAME:UGWU CHIOMA LOVELYN
    DEPARTMENT: BUSINESS EDUCATION
    REG NUMBER:2021/242881
    FACULTY:VTE
    COURSE CODE: ECO 101
    LEVEL:100 LEVEL

    (No 1)
    THE ELEMENTARY THEORY OF UTILITY
    Utiliy theory is based on fact that satisfaction which consumers derived from consumption of goods and services can be measured quantitative. Utiliy is the term used to determine the worth it value of a good or service.
    MEANING OF UTILITY
    Utiliy is the total benefit derived from consuming a good or service. Economic theories based on rational choice usually assume that consumers will strive to maximize their utility.
    Since utiliy can be measured,we should be able to determine such facts: What is total utility a consumer derives from the consumption of a commodity; or what are the marginal utilities derived from consuming several units of a commodity.
    TOTAL UTILITY: this is the total amount of benefits a consumer derives from consuming several quantities of a commodity.
    The four basic assumptions of utility theory are that:
    __ A consumer can rank any number of given options.
    __ More total utility is always better than less.
    __ A mix of goods is better than a set of one good.
    __ Costumers are rational decision makers.

    ( No 2)
    There are basically two schools of thoughts in the analysis of utility and they are as follows:
    (1) Cardinal school of thought and
    (2) Ordinal school of thought
    CARDINAL SCHOOL OF THOUGHT
    This approach emphasizes that utility is measurable.That is, after consuming a given quantity of a commodity the consumer can simply evaluate his satisfaction through the use of figures which range from zero to infinity.
    Assumptions of Cardinal school of thought:
    (i) utiliy is measurable
    ( ii) The consumer is rational
    ( iii) There is diminishing marginal utility
    ( iv) Total utility ( TU) depends on the quantity consumed
    (v) Money income of the consumer is held constant.

    ORDINAL SCHOOL OF THOUGHT
    Ordinal approach to consumer’s utiliy states that the satisfaction cannot be measured in exact numbers but can only be ranked or put Into order.It implies that is not capable of comparing the utility that has derived from different goods or different units.It means that Ordinal utility does not require that the consumer should be in a position to measure the utiliy from different goods or different combinations of goods. The Ordinal approach argues that utiliy is completely a psychological element and cannot be expressed in Cardinal numbers.In Ordinal utility analysis,an individual is observed to prefer one choice over others.Preference can be well_ ordered from utmost filling to tiniest filling.Only the ordering is important,the size of numerical values is no important except in as much as they establish the order.For example, if a consumer prefers ice cream to chocolate, it is not required to say that utility of 100 ice cream is twice as desirable as a utiliy of 50 from chocolate.There is need for a quantitative concept of utility in Ordinal utility analysis.
    The notion of ordinal utility has founded on the following axioms.
    1. A consumer can’t express his utiliy in the quantitative term.However,it is likely for him to express which of any two products he favors
    2. A consumer can rank or list entire merchandise he devours In the command of his partially.
    Assumptions of Ordinal utility
    1. Rationality of consumers: this assumes the rational consumers whose objective is to maximize the utiliy under the budget constraints.
    2. Ordinal measurement: the utiliy is measured ordinally by comparing the satisfaction whether higher or lower by consuming different bundles of goods.It is sufficient that the consumer Expresses his/ her preference for the various bundles of goods or commodities.It is not obligatory to undertake the utiliy quantitatively quantifiable.
    3. Transitivity: according to this assumption, when there are three goods A,B, and C and if the consumer chooses as A>B,B>C,then A>C.It is acknowledged as Transitivity in preference.
    4. Consistency : As per this assumption,the consumer remains consistent in choice.
    5. Non _ satiety : The consumer always prefer moreover less if there is a choice available for him.It means the consumer has not reached to point of saturation in case of any commodity such condition is called non _ satiety.

    ( No 3 )
    THE DEMAND FOR AND PRICING OF PRODUCTIVE FACTORS EMPHASIZING ON LABOR MARKET
    If labour productivity increases,firm will demand more labour at each wages rate and the firm’s Demand for labour itself will increase. This would shift the labour Demand curve outwards.

  38. Avatar Chinkata Chibuzor Emmanuel says:

    Question 1In economics, utility theory tries to explain the behavior of individual consumers in an economy. Utility theory argues that each person, given a list of options, can rank those options in a precise order of preference. Each person has different choices which are set, not changing over time

    Question 2
    Utility theory. bases its beliefs upon individuals’ preferences. It is a theory postulated in economics to explain behavior of individuals based on the premise people can consistently rank order their choices depending upon their preferences, it is the ability of a commodity to satisfy human wants.

    Question 3
    If labour productivity increases, firms will demand more labour at each wage rate and the firm’s demand for labour itself will increase. This would shift the labour demand curve outwards.

  39. Avatar Chinkata Uchenna Abel says:

    Question 1
    In economics, utility theory tries to explain the behavior of individual consumers in an economy. Utility theory argues that each person, given a list of options, can rank those options in a precise order of preference. Each person has different choices which are set, not changing over time.

    Question 2
    Utility theory argues that each person, given a list of options, can rank those options in a precise order of preference. Each person has different choices which are set, not changing over time, it is used to express consumers tastes and prestigence and how the consumer derives his satisfaction.

    Question 3
    When producing goods and services, businesses require labor and capital as inputs to their production process. The demand for labor is an economics principle derived from the demand for a firm’s output. That is, if demand for a firm’s output increases, the firm will demand more labor, thus hiring more staff. And if demand for the firm’s output of goods and services decreases, in turn, it will require less labor and its demand for labor will fall, and less staff will be retained.

  40. Avatar Idoko Odinaka peace says:

    Name: Idoko Odinaka Peace
    Registration Number: 2020/242102
    Department: Nursing Science
    1) Briefly discuss the elementary theory of utility.
    The utility of a good or service is determined by how much satisfaction a particular consumer obtains from it. Utility theory bases it’s beliefs upon individuals preferences. It is a theory postulated in economics to explain behavior of individuals based on the premise people can consistently rank order their choices depending upon their preferences. We can thus state that individuals’ preferences are intrinsic. Utility theory is a positive theory that seeks to explain the individuals’ observed behavior and choices. This contrasts with a normative theory, one that dictates that people should behave in the manner prescribed by it.
    2) Mention and discuss the different views of utility according to the two schools of thoughts which you have been taught.
    The cardinalist school asserts and believes in measuring the satisfaction level in utils. It means, it is possible to express utility that an individual derives from consuming a commodity in quantitative terms.
    The ordinal school asserts that the satisfaction level cannot be evaluated, however it can be levelled.
    3) Explain the demand for and pricing of productive factors emphasizing on the labour market.
    The demand for any factor of production, such as labor, physical capital or land is a derived demand because it arises not from the intrinsic utility provided by the factor but because of the value placed on the production it produces by consumers. If labour productivity increases, firm will demand more labour at each wage rate and the firms demand for labour itself will increase. This will shift the labour demand curved outwards.
    Change in technology can cause the demand for labour to increase and decrease depending on the situation.
    However with the production and subsequent competition from other firms, we could assume that chip development could become automated. The subsequent result would be a replacement of labour with machines. This would shift the labour demand curve inwards.

  41. Avatar Idoko Odinaka peace says:

    1) Briefly discuss the elementary theory of utility.
    The utility of a good or service is determined by how much satisfaction a particular consumer obtains from it. Utility theory bases it’s beliefs upon individuals preferences. It is a theory postulated in economics to explain behavior of individuals based on the premise people can consistently rank order their choices depending upon their preferences. We can thus state that individuals’ preferences are intrinsic. Utility theory is a positive theory that seeks to explain the individuals’ observed behavior and choices. This contrasts with a normative theory, one that dictates that people should behave in the manner prescribed by it.
    2) Mention and discuss the different views of utility according to the two schools of thoughts which you have been taught.
    The cardinalist school asserts and believes in measuring the satisfaction level in utils. It means, it is possible to express utility that an individual derives from consuming a commodity in quantitative terms.
    The ordinal school asserts that the satisfaction level cannot be evaluated, however it can be levelled.
    3) Explain the demand for and pricing of productive factors emphasizing on the labour market.
    The demand for any factor of production, such as labor, physical capital or land is a derived demand because it arises not from the intrinsic utility provided by the factor but because of the value placed on the production it produces by consumers. If labour productivity increases, firm will demand more labour at each wage rate and the firms demand for labour itself will increase. This will shift the labour demand curved outwards.
    Change in technology can cause the demand for labour to increase and decrease depending on the situation.
    However with the production and subsequent competition from other firms, we could assume that chip development could become automated. The subsequent result would be a replacement of labour with machines. This would shift the labour demand curve inwards.

  42. 1) utility is defined as the amount of satisfaction actioned from the use of commodity at a particular time.
    2) they are * ordinal utility
    * cardinal utility
    3) The labor market is the area where labor supply meets labor demand. Employment refers to the formal relationship between those who sell their labor and those who purchase it (i.e., the relationship between employees and employers.

  43. Avatar Nwoko chidimma says:

    NAME : NWOKO CHIDIMMA NNEOMA
    REG NO : 2020/242796
    DEPARTMENT; NURSING SCIENCE
    LEVEL 100LV
    COURSE ; ECO 101
    1. briefly discuss the elementary theory of utility
    Utility is the total satisfaction derived from consuming a good or service at any particular time.
    The economic utility of a good and service is important to understand because it directly influences demand and therefore the price of that good or service.
    four basic types of utility
    1.. Time utility: This is the satisfaction derived from consuming a particular commodity at a particular time example ice cream.
    2..form utility: This is the transformation of goods from one form to another to give the consumer satisfaction example, floor
    3..place utility:This can be obtained through the process of making goods and services easily available for the potential consumer.
    4..possession utility: This is the satisfaction you derive from consuming a product you own example mobile phone

    2..Mention and discuss the different views of utility According to the two schools of thought which you have been taught
    The concept of utility can be utilised by using two basic schools of thought
    1 Cardinal utility and ordinal utility
    (a) Cardinal school of thought emphasizes that utility is measurable. This means that the number of goods and services that benefit the need of a consumer can be measured using figures ranging from zero to infinity. Cardinal utility is the ideal of measuring economic value through imaginary units known as utils.

    five basic assumptions of the cardinal school of thought
    1.. Cardinal approach of utility is measurable
    2..the consumer is rational.
    3.. total utility depends on the number of goods and services.
    4..money income of the consumer is held constant
    There is diminishing marginal utility the assumption is derived from the concept of total, average and marginal utility.
    (b) Ordinal school of thought states that utility or satisfaction can’t be measured in exact numbers but can only be ranked or put into order. This means that the level of satisfaction a consumer obtains after consuming various commodities cannot be measured in number but can be arranged in the order of preference. ordinal utility refers to the concept of one good being more useful or desirable than another
    (3) Explain the demand for and pricing of productive factors emphasizing the market labour
    The demand for a factor is not a direct demand but an indirect or derived demand, if the demand for goods is elastic then the demand for factors would also be elastic. The demand and price of a factor also depend upon the market price of the goods for the production of which the factor is used.
    if Labour productivity increases, firms will demand more labour at each wage rate and the firm’s demand for labour itself will increase .this would shift the labour demand curve outward.

  44. Avatar IDOKO BRUNO-FAVOUR EKENEDILICHUKWU REG NO:2020/242344 says:

    1. Utility theory in economics pertains to the value or worth of a certain good, service, or item. It suggests that goods, services, and items can be ranked according to their usefulness. The premise was initially theorized by Swiss mathematician, Daniel Bernoulli, in the 18th century. Bernoulli founded the idea with regard to the differing values of things. With respect to theory, the utility of an item tends to be closely correlated to its price. An item such as gold, which is very useful and thus has great utility (combined with its scarcity), is very expensive. Total utility is closely tied to the bare concept of utility. Total utility points to the aggregate amount of usefulness and fruition there is to be gained from the use of a specific good, service, or other item. Furthermore, the abstract measurement of utility is another key concept of the theory. Although it’s hard to calculate the exact utility of something, economists use abstract measurements to capture the usefulness of things.
    2. In Plato’s Republics and in his other writings we see a development of idealism. According to him, every object of our experience is nothing but shadow. That is saying that it is not in a pure state of reality. Whatever we perceive is merely a poor copy of the reality that exists in another world which he designates as the world of Forms or Ideas. Thus Plato’s Idealism talks of two worlds: the world of shadows and the world of Ideas. The latter is replete with absolute perfection, real, unchangeable, universal and eternal realities whereas the former is the world of imperfect copies of things residing in the real world of ideas. The implication is that every material thing must have its true copy in the world of ideas. Idealist would say that even the pen you are having now is only an imperfect copy or a shadow of the ideal pen in the world Ideas. Though there may ne various strands of idealism, the basic tenet is the emphasis that existence is explained in terms of the mind and its function.

    Other Views on Idealism

    Since Plato, there have been many understanding of idealism. Descartes is one such Idealist. He holds that the most important element in the nature of knowledge is mind or spirit. This idea is beautifully expressed in his popular philosophical dictum. Corgito ergo sum (I think, therefore I exist). This idealistic statement has so much implication for Descartes who doubted the reality of anything having material nature and would only accept as reality the thought that he is thinking. Bishop George Berkeley also advanced the school of idealism in modern times by his esse est percipi (to be is to be perceived) . What is real is that which can be perceived, what cannot be perceived is unreal.

    To put it more correctly again, the central thesis of idealism is that true knowledge can be derived from reason alone since it is only the faculty of reason that can grasp or extract from material things their spiritual forms or essences. The faculty of the senses provides the mind with imperfect, unstable and changing knowledge of physical objects.

    Educational Implication of Idealism

    1. For Plato, Education simply means stimulation of the mind to recall that which it already knows before its being in the world. He taught that the soul I born with innate knowledge which it lost with contact with the material world (human body). Thus the concept of school and education is to create an enabling environment where students are encouraged to recall and embrace the concept of the Good and the universal truth that already exist in their soul which has been forgotten. An idealistic educational system would concern itself with ideas of things. The goal of education should be connected with the lifetime work of searching for true ideas. It should be to cultivate the human mind.

    2. Idealism prefers the world of the spiritual to the world of material things. Thus, in education, effort is made to create an enabling environment for the orientation of the youngster towards spiritual things or toward ideas.

    3. As a result of the basic tenet of Idealism, educational curriculum is made of humanities (languages, literature, philosophy, religion, etc) and social studies. These subject are idea-based. Thus they are to awaken in students the basic ideas of the universe. They help in the cultivation of the mind. Not that idealist do not consider physical training, vocational training and sciences, they consider them but only in the subordinate manner.

    Realism

    Realism as a philosophy is traceable to Aristotle, the famous student of Plato, (384-322 BC). He is acclaimed to be the father of realism just as Plato is believed to be the propounder of idealistic tradition in Western Philosophy.

    The contention of Realism is that objects of our sensual perceptions are real in themselves, whether the mind perceives it or know it or not. The basic tenet of realism is that reality and knowledge of things can be acquires independent of the mind that perceives them. In other words reality is extramentasl and not intramental, i.e. it exists outside the mind and not within the mind as ideas. The implication of the realist epistemology is that everyday experience is true knowledge. “Our dependable knowledge if external reality is possible. Physical reality asserts, as fact, that the actual sticks, stones and trees of the universe exist whether or not there is a human mind to perceive them”. Ozmon & Craver (1995). “The realist prioritizes a worl of ‘things; as opposed to a world of idea Jacobsen, (1842-1910).

    Some of the proponents of Realism are Baruch Spinoza (1632-1677), John Locke (1632-1704), American Philosopher-Psychologist, William James, (1842-1910), etc.

    Realism is antithetical to Idealism. It upholds that the view that matter is real and not shadows or “copies” of the real which exist in the spiritual/immaterial world. In its proposition, realism says that our concrete materials world is capable of furnishing human mind with reality. And these realities are independent of the perceiving mind. It is in opposition to \berkeleyan theory of esse est percipi (to be is to be perceived) which virtually equares existence with perception such that an object cannot be said to exist if there is no body or some ‘mind’ to perceive it. Agudosi (2033:58)

    Realism is like an umbrella term that covers many other philosophies which can be said to be sub-schools of realism. These sub-schools believe that reality is perceptible, concrete and outside the mind. Thus we have the following ‘Realisms’.

    1. Aristotelian Realism

    2. Scholastic Realism

    3. Natural or Scientific Realism

    Aristotelian Realism: This is also known as classical realism because it is the premier realism of western culture. As the name suggests, it is an intellectual product of Aristotle. He was a student of Plato, but disagreed with his master on what is the nature of human knowledge. Do we actually perceive things the way they are, or do we perceive them as they appear to us? That is to ask if the concrete data of our experiences are real or imaginary? That is why he wrote on almost all the fields of human knowledge: poetry, rhetoric, ethics, politics, meteorology, embryology, physics, mathematics, metaphysics, anatomy, physiology, logic, dreams and so forth.

    “Aristotle viewed reality as a uniting of both actuality (form) and potentiality (matter). Both must be united in order for something to be real or to truly exist”, and that is the principle of his Aristotelian Hylemorphism. All things are made of matter. What makes one matter different from another? It is the form (morphe), the differentiating or the individuating principle of matter. It is evident that every object of our daily experience is made up of matter and form and it is this co-existence of matter and form in reality that Aristotle designates as Hylemorphism. It is then the form that make something what it is, as against or different from what is not. When both matter and form are not present, knowledge is not possible.

    Aristotle described the relationship between form and matter with the Four Causes:

    Material cause – the matter from which something is made;
    Formal cause – the design that shapes the materials object;
    Efficient cause – the agent that produces the object; and
    Final cause – the direction toward which the object is tending.
    Through these different forms, Aristotle demonstrated that matter was constantly in a process of change. He believed that God, the Ultimate Reality held all creation together. Organization was very important in Aristotle’s philosophy. He maintained that human beings as rational creatures are fulfilling their purpose when they think, and thinking are their highest characteristic.

    Furthermore, realism unlike idealism does not talk about dual world of matter and form in order to explain human knowledge. For realists, there is only “a world” of reality.

    Educational Implications of Realism

    1. Religious realists do not limit knowledge to the phenomenal world alone, but hold that knowledge acquired through the senses is real; rational knowledge does not form the entire domain of reality. There is a being responsible for their existence. The cosmos are real, and they point to the existence of a higher Being. Furthermore, the study of God reveals that man always depends on God for his perfection and self-fulfillment. Therefore, education must recognize and incorporate this fact. Okafor (1981) writes that this is the basic educational task of scholastics. “The two domains (the natural and the supernatural) are complimentary elements in man’s effort towards the attainment of his ultimate self-fulfillment and complete actualization”.

    2. The scientific realism sees the environment and the training of the senses for perception as against empty memorization of abstract things. It is a total rejection of the classical method whereby the child is made to memorizing knowledge by rote system. The child is given enormous freedom to discover knowledge and is given freedom to think through situations rather than accepting authority as source of human knowledge. One major criterion for knowledge here is the inductive method of observation, experimentation, formulation of hypothesis and laws which eventually form what is known today as scientific knowledge. This implies that nay knowledge that cannot be verified inductively is committed to the flames, and more so are dogmas. Education is better dome God-free.

    Appreciable is the influence of Scientific knowledge to life. It has actually advanced the welfare of man in the society. But care must be taken not to reduce life to what can be tested, evaluated and decided in the laboratory. Life is always larger than scientific logic.

    Pragmatism

    Pragmatism is generally viewed as American philosophy. It emanated in the later part of the nineteenth century. The proponents of this philosophical tradition are George Sanders Pierce (1839-1914), William James (1842-1910) and John Dewey (1839-1914) Pragmatism comes from the Greek word pragma meaning work. Pragmatists hold that activity or experiment is done first, and then on the basis of the result, principles and ideas derived. That is to say that the validity of any philosophical position is tested against its ability to solve current problem. If a thing works in practice, them it is valuable, desirable, and should be upheld. The implication is that nothing is absolutely good; everything is subject to change as situation demands. “Both George Sanders Peirce and William James are often credited to have described pragmatism in part through the biblical allusion. “By their fruits you shall know them”. Hence pragmatism is also known as Experimentalism or consequentialism.

    It should be noted here that the capacity of an action or theory to solve the problem of an individual does not qualify that action or theory as truth. It must transcend the needs of an individual to the overall wellbeing of the community. In other words, an action could be satisfactory to an individual but not for the state, such action is morally evil even though it works for the individual. Another characteristic of pragmatism is that it does not make any extramental reference to any authority outside the activity that test for sustainability of any philosophical position. For example in America today, abortion is legally upheld because it serves the individual and helps the state in the management of population size. In this sense, it is “ok” by their law. But should reference be made to absolute moral norm abortion would be found wanting and unacceptable.

    It is, thus called Experimentalism because pragmatists believe in experiment as the only criterion of truth. To them truth, reality, goodness and evil are all relative terms. These concepts are not predetermined and absolute. They are proved by man’s own experiences, Pragmatists also hold that whatever was true yesterday; need not be the same today.

    Pragmatism is called Consequentialism because any human activity is evaluated in terms of its consequences or results. Change is the basic factor of pragmatism. No truth is absolute and permanent. It is always changing from time to time and from place to place. Pragmatists do not believe in fixed, eternal and absolute values of life to be followed in all times, places and circumstances. To them, only those ideals and values are true which result in some utility to mankind in a certain set of times.

    The central positions of Pragmatism are schematized as follows:

    1. Faith in the present and future.

    2. Change is the only real thing. Everything else is provisional in the sense that the usefulness of any theory is sustained as long as it serves the purpose. Truth is formed by its result.

    3. Values are relative. There is no such thing as ultimate value.

    4. Critical intelligence is of great importance. Knowledge obtained at any point in time is never an end in itself but a means to an end. That is the main idea behind Dewean Pragmatism as Philosophy Instrumentalism.

    5. Problems as the motives of truth.

    Educational Implications of Pragmatism

    Singh (2007) states that pragmatism is closely related to modern education. It believes in change in education and opposes traditional education. Only gaining of knowledge for the sake of knowledge is not the real aim of education.

    This philosophy focuses on mental, religious and aesthetic modes of human activity. Through activities, human being creates their own ideals and values. Aspects of education should be suitable to human good and human growth. According to pragmatists, educational process should promote human welfare. Only flexible educational institutions can remain alive, active and satisfy the changing needs of the society and provide real experiences through activities.
    3. Demand for labor is a concept that describes the amount of demand for labor that an economy or firm is willing to employ at a given point in time. This demand may not necessarily be in long-run equilibrium. It is determined by the real wage firms are willing to pay for this labor and the number of workers willing to supply labor at that wage.

    A profit-maximizing entity will command additional units of labor according to the marginal decision rule: If the extra output that is produced by hiring one more unit of labor adds more to total revenue than it adds to the total cost, the firm will increase profit by increasing its use of labor. It will continue to hire more and more labor up to the point that the extra revenue generated by the additional labor no longer exceeds the extra cost of the labor. This relationship is also called the marginal product of labor (MPL) in the economics community.

    Other Considerations in Demand for Labor
    According to the law of diminishing marginal returns, by definition, in most sectors, eventually the MPL will decrease. Based on this law: as units of one input are added (with all other inputs held constant) a point will be reached where the resulting additions to output will begin to decrease; that is marginal product will decline.

    Another consideration is the marginal revenue product of labor (MRPL), which is the change in revenue that results from employing an additional unit of labor, holding all other inputs constant. This can be used to determine the optimal number of workers to employ at a given market wage rate. According to economic theory, profit-maximizing firms will hire workers up to the point where the marginal revenue product is equal to the wage rate because it is not efficient for a firm to pay its workers more than it will earn in revenues from their labor.

  45. Avatar Offordile Divine favour chimdindu says:

    1. Utility Theory; this is based on the fact that satisfaction which consumers derive from consumption of goods and services can be measured quantitatively.

    2. Cardinal utility; this is the idea of measuring economic values through imaginary units, it is the thought that says that economic welfare can be directly observable

    For example; people maybe able to express the utility that consumption gives for certain goods.
    If a Nissan car gives 5000 units of satisfaction a BMW would give 8000 units this important for welfare economics which tries to put values in on goods to see what price people are willing to pay for the a good.

    2b. Ordinal utility; States that the satisfaction a consumer gets after consumption of goods or service cannot be sealed in numbers wheras they can be arranged in order of preference.
    Two English economists, John Hicks and R.J. Allen 1930 argued that the consumer behavior theory should be introduced based on Ordinal Utility. According to the ordinal approach, utility is a psychological phenomenon like happiness, satisfaction, and welfare. The ordinal theory is highly subjective and differs across individuals. Therefore, it cannot be measured in quantifiable terms.

    3. The demand for labour shows how many workers the firms are willing and able to hire at a given time and wage rate.

    Therefore, demand for labour is a concept that illustrates the amount of labour a firm is willing to employ at a particular wage rate. However, the determination of equilibrium in the labour market will also depend on the supply of labour.

    Equilibrium in the labour market depends on the wage rate firms are willing to pay and the amount of labour willing to provide the necessary work.firm will demand further labour only if an increase in the labour force will guarantee to bring in more profits. Essentially, if the demand for a firm’s product increases, the firm will demand more labour to sell the additional units of goods or services. The assumption here is that the markets will demand the goods produced by labour, which in turn will be employed by firms.For example, the production of computer chips will require a certain amount of skilled software and hardware engineers. Thus, the demand for such workers would increase. This would shift the labour demand curve outwards.However, with the production and subsequent competition from other firms, we could assume that chip development could become automated. The subsequent result would be a replacement of labour with machines. This would shift the labour demand curve inwards.

    Factors of production can be defined as inputs used for producing goods or services with the aim to make economic profit.

    In economics, there are four main factors of production, namely land, labor, capital, and enterprise. The price that an entrepreneur pays for availing the services of these factors is called factor pricing.

    An entrepreneur pays rent, wages, interest, and profit for availing the services of land, labor, capital, and enterprise respectively. The theory of factor pricing deals with the price determination of different factors of production. In context of an economy, these four factors of production when combined together produce a net aggregate of products, which is termed as national income. Therefore, it is important to determine the prices of these four factors of production. The theory of factor pricing deals with the determination of the share prices of four factors of production, namely land, labor, capital and enterprise.

    In other words, the theory of factor pricing is concerned with the principles according to which the price of each factor of production is determined and distributed. Therefore, the theory of factor pricing is also known as “theory of distribution”. According to Chapman, the theory of distribution, “accounts for the sharing of the wealth produced by a community among the agents, or the owners of the agents, which have been active in its production.

    Reference; www. economicshelp.org
    http://www.vendantu.net

    Offordile Divine favour chimdindu
    Faculty of health Sciences
    Department of Nursing
    University of Nigeria
    Reg no; 2021\242479

  46. Avatar Nweke Chinemerem Maryann (2021/244502) says:

    1. Elementary Theory of utility
    Utility theory bases its beliefs upon individuals’ preferences. It is a theory postulated in economics to explain behavior of individuals based on the premise people can consistently rank order their choices depending upon their preferences. Each individual will show different preferences, which appear to be hard-wired within each individual. We can thus state that individuals’ preferences are intrinsic. Any theory, which proposes to capture preferences, is, by necessity, abstraction based on certain assumptions. Utility theory is a positive theory that seeks to explain the individuals’ observed behavior and choices.The distinction between normative and positive aspects of a theory is very important in the discipline of economics. Some people argue that economic theories should be normative, which means they should be prescriptive and tell people what to do. Others argue, often successfully, that economic theories are designed to be explanations of observed behavior of agents in the market, hence positive in that sense. This contrasts with a normative theory, one that dictates that people should behave in the manner prescribed by it. Instead, it is only since the theory itself is positive, after observing the choices that individuals make, we can draw inferences about their preferences.
    2.The Two schools if thoughts are
    1. Cardinal school of thought: The cardinal utility analysis or the marginal approach to utility states that utility or the satisfaction derived from the consumption of a commodity or service is measurable and can be expressed in quantitative terms. This approach or method of utility analysis is also known as marginal analysis or neoclassical approach because it was developed and explained by neoclassical economists.
    The British social scientist Jeremy Bentham (1748-1832) had employed the concept of cardinal measurement for the first time in his attempt to develop a rational system of civil and criminal law. According to George J. Stigler, Bentham in his book ‘Introduction to the Principles of Morals and Legislation (1789), suggested the measurement of quantities of ‘pleasure’ and ‘pain’ to make a more rational system of civil and criminal law. In this article, we will discuss the concept of the cardinal utility analysis, its basic concepts, and terminologies, and its major assumptions (cardinal analysis and its assumptions).
    The German economist Hermann Heinrich Gossen (1854), English economist William Stanley Jevons (1871), and French mathematical economist Leon Walras (1874) made the concept of cardinally measurable utility theory generally accepted in economic analysis. They believed utility is measurable and additive so that ‘utils’ (units of utility) obtained from one good are not affected by the rate of consumption of other goods. It means that they believed the utility derived from the consumption of a product is independent of the consumption of other products.
    The theory of cardinal utility was made more advanced by neoclassical economists (Alfred Marshall, A.C. Pigou, etc.) With their marginal revolution of the 1870s. Neoclassical economists enlarged the utility theory with their assumption of measurability. Their units of measurement are random; they are ‘utils’. For example, they believed in the measurement of utility like if a consumer consumes 3 units of orange, he would say that he got 10 utils from the first unit, 8 utils from the second unit, and 6 utils from the third unit. With the passes of time and tackling so many problems relating to practical life the cardinal utility theory had faced so many criticisms and as a result some alternative theories like ordinal utility analysis or Hicks-Allen’s indifference curve analysis, Samuelson’s revealed preference theory, and Hick’s logical weal ordering theory have been advanced. The issues and problems associated with the cardinal approach have shifted the microeconomic theories from cardinal to ordinal utility or ranked preference.
    Basic Concepts and Terminologies
    The basic concepts and terminologies developed by cardinal utility analysis are briefly explained as below;
    Concept of Total Utility
    It is the whole satisfaction that an individual obtains by consuming a specified quantity of a commodity per unit of time. According to Richard G. Lipsey and K. Alec Chrystal, ‘Total utility refers to the total satisfaction derived from all the units of that product consumed’.in the cardinal approach of utility, we can write the total utility (TU) as;
    TU= U1(X1) +U2(X2) +…. +Un (Xn)
    Where, Ui (i=1, 2… n) is the utility derived from unit ‘i’ of good X.

    Putting alternatively, if we add the utilities obtained all the units of a commodity during the given time we get the value of total utility (TU). Thus the mathematical formula to measure total utility can also be expressed as;

    TU= MU1+MU2+MU3+……..+MUn
    Where TU is total utility; MU1+MU2+MU3+……..+MUn is a marginal utility from 1 to n units of a given commodity. Therefore, total utility is the function of the quantity consumed by a consumer.

    Concept of Marginal Utility
    It can be defined as the change in total utility concerning a change in per unit consumption of a commodity at a given time. According to economists Richard G. Lipsey and K. Alec Chrystal, ‘Marginal utility refers to the change in satisfaction resulting from consuming one unit more or one unit less of a product’. Similarly, economists P.A. Samuelson and W.D. Nordhaus sate, ‘The expression ‘marginal’ is a key term in economics and always means ‘additional’ or ‘extra’. Marginal utility denotes the additional utility you get from the consumption of an additional unit of a commodity.
    For instance, consider our example of total utility, the total utility from the consumption of the first four units is 22 utils and from all five units is 25 utils; so the marginal utility of the fifth unit is 3 (=25-22) utils. The marginal utility of the fifth unit of the commodity consumed is the addition to the total utility provided by consuming that extra unit of commodity. Thus, marginal utility is a change in total utility as a result of the change in the unit of a commodity consumed. Mathematically, marginal utility is the slope of the total utility curve. It can be expressed
    MUn= ΔTU/ΔQ or, MU= dTU/dQ
    Where ΔTU=change in total utility; and ΔQ= change in quantity consumed
    Donald Stevenson Watson and Malcolm Getz express that the marginal utility (MU) of any amount ‘j’ of a product is the total utility (TU) of that product minus the TU of one fewer (j-1) units. Thus,
    MUj=TUj-TUj-1

    Assumptions of Cardinal Utility Analysis
    Cardinal utility analysis of demand relies on certain important assumptions. The fact is that the cardinal utility analysis is being criticized due to its unrealistic assumptions, so we need to know the basic assumptions of cardinal utility analysis. The following are those major assumptions on which the whole utility analysis rests.

    Rationality: All the consumers are rational in the sense that they attempt to maximize their utilities from their given money income. They obtain all the relevant information needed to maximize their satisfaction.

    Cardinal Measurement of Utility
    The system of cardinal utility analysis holds that utility is a measurable and quantifiable entity. Cardinal utility analysis advocates that an individual can state utility or satisfaction he gets from the goods in arithmetic terms. So, an individual can say that he derives utility equals 25 units from the consumption of a unit of Good J, and 35 units from the consumption of Good S. Furthermore the cardinal account of utility assumes that an individual can compare utilities obtained from merchandise in respect of size. That is in the form of how much one level of satisfaction is greater than another.
    Marshall believed that marginal utility is quantifiable in terms of money. It means, the amount of money that a person is prepared to pay for a unit of a good rather than go without it, is a measure of utility he derives from that good. Thus, money is the measuring rod of utility, according to Marshall. Some other economists belonging to the cardinal school measure utility in imaginary units called utils. Accordingly, a consumer can say that one orange for example provides him satisfaction equal to5 utils.

    Independent Utilities
    The cardinal school of utility analysis assumes that the utility derived by consumers by consuming any goods or services is independent of the quantity consumed of other goods and services. Thus, the satisfaction from consumption of any particular good depends only on the quantities of that particular good. For instance, if there are n commodities in the basket with quantities J1, J2, J3,….Jn, then total utility is a function of all goods and expressed as;
    U=f (J1, J2, J3… Jn)
    According to Anna Koutsoyiannis, total utility is additive as;
    U= U1 (J1) +U2 (J2) +…… +Un (Jn)

    In the later versions of the cardinal utility analysis, the assumption of additivity was removed. They then assumed that the total utility that a person derives from the whole collection of goods purchased by him is simply the total sum of the separate satisfaction of the goods. Thus, the cardinal method of utility analysis regards utility as an additive.

    Constant Marginal Utility of Money
    This assumption is entirely related to measuring rod use of money in the analysis of utility. Unit this analysis marginal utility of money should remain constant to use as a measuring rod of utility. The necessary quantity of a standard unit of measurement is that the utility remains constant throughout the analysis. If the marginal utility of money changes the measuring rod for utility becomes unrealistic. Marshall measured marginal utilities derived from any good or service in terms of money. By holding constant marginal utility of money even with the change in the price of the commodity Marshall ignored the income effect of change.

    Diminishing Marginal Utility
    The cardinal utility analysis assumes that the marginal utility of a commodity diminishes as the consumer purchases larger quantities of it. It means if a consumer consumes the successive units of the commodity one after another, the satisfaction that is derived from the additional units of the commodity goes diminishing.
    2. Ordinal school of thought: Ordinal utility theory claims that it is only meaningful to ask which option is better than the other, but it is meaningless to ask how much better it is or how good it is. All of the theory of consumer decision-making under conditions of certainty can be, and typically is, expressed in terms of ordinal utility.
    Assumptions of Ordinal Utility Analysis
    According to P.A. Samuelson and William D. Nordhaus, ‘In ordinal utility approach consumers need to determine only their preference ranking of bundles of commodities.’ In ordinal utility analysis, an individual is observed to prefer once choice to another. Preference can be ordered from most satisfying to least satisfying. Only the ordering is important; the size of the numerical values is not important except in as much as they establish the order. To understand indifference curves, it is best, to begin with, the assumptions. The indifference curve approach as a tool of the ordinal utility analysis is based on the following assumptions;

    i. Rationality of Consumer
    This analysis assumes the rational consumers whose objective is to maximize the utility under the budget constraint.
    ii. Ordinal Measurement
    The utility is measured ordinally by comparing the satisfaction whether higher or lower by consuming different bundles of goods. It is sufficient that the consumer expresses his/her preference for the various bundles of goods commodities. It is not obligatory to undertake that utility is quantitively quantifiable.
    iii. Transitivity
    According to this assumption, when there are three goods A, B, and C and if the consumer chooses as A > B, B > C, then A > C. It is acknowledged as transitivity in preference.
    iv. Consistency
    As per this assumption, the consumer remains consistent in choice. If there are two goods A and B then A is preferred over B i.e. A > B. At the same time B cannot be preferred over A. i.e. B A. It is called consistency in choice.
    V.Non- satiety
    The consumer always prefers moreover less if there is a choice available to him. It means the consumer has not reached to point of saturation in case of any commodity such condition is called non-satiety.
    Vi. Diminishing Marginal Rate of Substitution (DMRS)
    Under this theory, the marginal rate of substitution between two goods always diminishes so that a consumer can attain the same level of satisfaction. It is given by ΔY/ΔX in the case of two goods X and Y and it tells the rate of substituting commodity X to get one more unit of commodity Y
    3. Demand for Labor
    Demand for labor is a concept that describes the amount of demand for labor that an economy or firm is willing to employ at a given point in time. This demand may not necessarily be in long-run equilibrium. It is determined by the real wage firms are willing to pay for this labor and the number of workers willing to supply labor at that wage.
    A profit-maximizing entity will command additional units of labor according to the marginal decision rule: If the extra output that is produced by hiring one more unit of labor adds more to total revenue than it adds to the total cost, the firm will increase profit by increasing its use of labor. It will continue to hire more and more labor up to the point that the extra revenue generated by the additional labor no longer exceeds the extra cost of the labor. This relationship is also called the marginal product of labor (MPL) in the economics community.
    According to the law of diminishing marginal returns, by definition, in most sectors, eventually the MPL will decrease. Based on this law: as units of one input are added (with all other inputs held constant) a point will be reached where the resulting additions to output will begin to decrease; that is marginal product will decline.
    Another consideration is the marginal revenue product of labor (MRPL), which is the change in revenue that results from employing an additional unit of labor, holding all other inputs constant. This can be used to determine the optimal number of workers to employ at a given market wage rate. According to economic theory, profit-maximizing firms will hire workers up to the point where the marginal revenue product is equal to the wage rate because it is not efficient for a firm to pay its workers more than it will earn in revenues from their labor.
    Common Reasons for a Shift in Labor Demand
    Changes in the marginal productivity of labor, such as technological advances brought on by computers
    Changes in the prices of other factors of production, including shifts in the relative prices of labor and capital stock
    Changes in the price of an entity’s output, usually from an entity charging more for their product or service
    ii: Pricing of the productive factor “labour”
    Determination of Prices means to determine the cost of goods sold and services rendered in the free market. In a free market, the forces of demand and supply determine the prices.The Government does not interfere in the determination of the prices. However, in some cases, the Government may intervene in determining the prices. For example, the Government has fixed the minimum selling price for the wheat.
    1] Product Cost
    Product cost is one of the most important factors which affect the price. It includes the total of fixed costs, variable costs and semi-variable costs incurred through the production, distribution, and selling of the product. Fixed costs refer to those costs which remain fixed at all the levels of production or sales. For instance, rent, salary, etc. Variable costs attribute to the costs which are directly related to the levels of production or sales. For example, the costs of basic material, apprentice costs, etc. Semi-variable costs take into account those costs which change with the level of activity but not in direct proportion.
    2] The Utility and Demand :Habitually, end user demands more units of a product when its price is low and vice versa. On the other hand, when the demand for a product is elastic, little variation in the price may result in large changes in quantity demanded.bWhile, when it is inelastic a change in the prices does not affect the demand significantly. In addition, the buyer is ready to pay up to that point where he perceives utility from the product to be at least equal to the price paid.
    3] The extent of Competition in the Market
    The next consistent factor affecting the price of manufactured goods is the nature and degree of competition in the market. A firm can fix any price for its product if the degree of competition is low. However, when there is competition in the market, the price is fixed after keeping in mind the price of the substitute goods.
    4] Government and Legal Regulations
    The firms which have a monopoly in the market, habitually charge a high price for their products. In order to protect the interest of the public, the government intervenes and regulates the prices of the commodities. For this purpose, it declares some products as indispensable products. For example, Life-saving drugs, etc.
    5] Pricing Objectives
    Another consistent factor, affecting the price of an item for consumption or service is the pricing objectives. Profit Maximization, Obtaining Market Share Leadership, Surviving in a Competitive Market and Attaining Product Quality Leadership are the pricing objectives of an enterprise. By and large, firm charges higher prices to cover high quality and high cost if it’s backed by the above objective.
    6] Marketing Methods Used
    A range of marketing methods such as circulation system, quality of salesmen, marketing, type of wrapping, patron services, etc. also affects the price of manufactured goods. For instance, an organization will charge sky-scraping revenue if it is using the classy material for wrapping its product.

  47. Avatar Anike peter madueke says:

    REG NUMBER : 2020/249532
    DEPARTMENT : PURE AND INDUSTRIAL CHEMISTRY

    1. Utility is the ability of goods and services to satisfy the unlimited human want, it can be described as the satisfaction hamas get from consumption of given goods and services.

    2.
    I. Cardinal school of thought viewed utility as a phenomena that can be measured, that is the amount of goods and services that can satisfied consumers can be measured or calculated .

    ii. ordinal utility described that consumer
    ranks economic goods according to the order of its usefulness .

    3 . Increase in price in the labor market , that is improve in salary leads to decrease quantity of labor demanded but decrease in salary leads to increase in quantity of labor in demand.

  48. Avatar Onyeocha Blessing Chinyere says:

    Name: Onyeocha Blessing Chinyere Matric no. 2021/246563 Department:. Economic. Course code:. Eco 101.
    Answers

    Utility can be defined as the satisfaction a consumer derived from consuming a commodity or the usefulness and capacity of a commodity to satisfy human wants. Types of utility
    (I) Timee utility:. this is when a product is accessible to consumers whenever they need them. ( ii). Place utility: it refers to making goods and services available in location that allow consumer to access the goods and services. (III) Forms utility:. this is the transformation of goods from one forms to another example flour to bread. Palm kernel to Palm oil and cassava to garrri. Kinds of utility. * Total utility: Is the total amount of satisfaction a consumer derives from consuming a particular goods and services at a given period of time. * Average utility: Is the per unit of consumption at a particular time and in a given period of time. * Marginal utility: Is the extra unit of the given commodity by the consumer. No2a, Cordinal school of thought: This approach emphasizes that utility is measurable,it tells how utility can be expressed in numbers,and how a consumer can express his/her satisfaction. No2b, Ordinal utility can be defined as the satisfaction of user, goods can be ranked inorder of preference but cannot be evaluated numerically. No3a, Demand for Productive factors ( labour market). Factors of production are the input needed for the creation of goods or services, these include labour, capital, land, entrepreneurship.the demand for labour is a derived demand. *Demand for labour means the total number of workers, employee are within and ready to employ or hire at a particular time in a given wage rate. Demand for labour is a derived demand because is not required for it’s own sake but for what labour can produce. No3b, Pricing for production factors ( labour market). Pricing is the process where by a business sets the price at which it will sell it’s products and services. A pricing strategy takes into account segment, ability to pay, Market conditions,competitors action, trade margins and input cost among others. *Labour can be define as any human input to an economic ventures as a factor of production, labour is any work performed by people contributing to a goods and services production.each industry need labour to accomplish it’s specific goals. * Labour market is any institution or arrangements which bring job seekers and employers of labour together within a particular geographical region. *Direct labour cost are the wages paid to employees who work on producing a companys product or services.

  49. Avatar Aboshi Blessing Iheoma says:

    Name:Aboshi Blessing Iheoma
    Reg no:2019/243604

    Answers
    1.Utility is the satisfaction or benefits a person gets from the consumption of a good.So the utility theory is the theory that explains how consumers make decisions about what to buy.
    2a.Total utility:Is the total benefits or satisfaction a consumer gets from the consumption of goods and services.
    b.marginal utility:is the additional utility received from consuming one additional unit of good per unit of time.

    3. The demand for any factor of production is a derived demand.
    A derived demand is a demand for a factor not for its own sake but for the demand of the goods it is used to purchase.A firm cannot make a profit unless their is demand for the output.

  50. Avatar EGBO PHILOMENA OLUEBUBECHUKWU says:

    Name: EGBO PHILOMENA OLUEBUBECHUKWU
    REG. NO 2020/248961
    DEPARTMENT: SCIENCE LABORATORY TECHNOLOGY

    1.
    ELEMENTARY THEORY OF UTILITY
    Concept of utility: Utility can be defined as the satisfaction that a consumer derives from consumption of a good or services. Goods and services are derived because of their ability to satisfy human wants.
    Theories of utility: a) Cardinal utility theory and b) Ordinal utility theory
    a) Cardinalutility theory: this theory states that the satisfaction consumer’s derived by consumption of a good or services can be measured in numerical terms.
    b) Ordinal utility theory: this states that utility can be ranked. It is psychological in the sense that a rational consumer would always go for good or services that he or she thinks gives home or her the maximum satisfaction.
    Types of utility: i) Total utility ii) Marginal utility
    i) Total utility is the total benefits or satisfaction that a person derives from the consumption of good and services.
    ii) Marginal utility is the additional satisfaction obtained or derived from consuming one unit of the good per unit time.
    UTILITY MAXIMIZATION: This is the attainment of the greatest greatest possible utility from the consumption of a good or services while consumer strive to achieve maximum satisfaction from consumption, they are constrained by two major factors; income and price of the good/commodity.

    2.
    I) The cardinal school of thought
    II) The Ordinal school of thought

    I) CARDINAL SCHOOL OF THOUGHT: This approach emphasizes that utility is measurable. That is, after consuming a given quantity of a commodity the consumer can simply evaluate his satisfaction through the use of figures which range from zero to infinity.
    II) ORDINAL SCHOOL OF THOUGHT: This approach asserts that utility cannot be measured in quantitative terms. Rather, the consumer can compare the utility accruing from different commodities (as a combination of them) and rank them in accordance with the satisfaction each commodity (or combination of commodities) gives him. The ordinal utility believes that the satisfaction level cannot be evaluated; however, it can be levelled.

    3.
    Demand for labor is a concept that describes the amount of demand for labor that an economy or firm is willing to employ at a given point in time. This demand may not necessarily be in long-run equilibrium. It is determined by the real wage firms are willing to pay for this labor and the number of workers willing to supply labor at that wage.
    Labor market factors drive the supply and demand for labor. Those seeking employment will supply their labor in exchange for wages. Businesses demanding labor from workers will pay for their time and skills.

  51. Avatar Ajana Patrick Chibuzor says:

    NAME: AJANA PATRICK CHIBUZOR
    LEVEL: 100L
    DEPARTMENT: SOCIOLOGY AND ANTHROPOLOGY
    REG NO: 10017358HI
    ASSIGNMENT: ECO 101
    EMAIL: ajanapatrick66tlfs@gmail.com

    1. Utility in economics was first coined by the noted 18th-century Swiss mathematician Daniel Bernoulli. In economics, utility is a term used to determine the worth or value of a good or service. More specifically, utility is the total satisfaction or benefit derived from consuming a good or service. Economic theories based on rational choice usually assume that consumers will strive to maximize their utility. The economic utility of a good or service is important to understand because it directly influences the demand, and therefore price, of that good or service. In practice, a consumer’s utility is usually impossible to measure or quantify. However, some economists believe that they can indirectly estimate what is the utility of an economic good or service by employing various models.

    2a. Cardinal school of thought: This approach emphasizes that utility is measurable. That is, after consuming a given quantity of a commodity the consumer can simply evaluate his satisfaction through the use of figures which range from zero to infinity. ASSUMPTIONS OF CARDINAL APPROACH.
    i. Utility is measurable
    ii. The consumer is rational
    iii. There is diminishing marginal utility
    iv. Total utility (TU) depends on the quantity consumed.
    v. Money income of the consumer is held constant.
    b. Ordinal school of thought: The ordinal utility approach is a school of thought that believes that utility cannot be measured quantitatively, that is, utility is not additive rather it could only be ranked according to preference. The consumer must be able to determine the order of preference when faced with different bundles of goods by ranking the various ‘baskets of goods’ according to the satisfaction that each bundle gives. For instance, if a consumer derives 3 utils from the consumption of one unit of commodity X and 12 utils from the consumption of commodity
    Y, this means that the consumer derives more satisfaction from consuming commodity Y than from commodity X. Though to the cardinals, the consumer derives four times more utility from one unit of Y than from X. The ordinal utility theory explains consumer behaviour by the use of indifference curve.
    4.1 Assumptions of Ordinal Utility Approach
    (i) Rationality: – The consumer is assumed to be rational meaning that he aims at maximizing total utility given his limited income and the prices of goods and services.
    (ii) Utility is Ordinal: – According to this assumption, utility is assumed not to be measurable but can only be ranked according to the order of preference for different kinds of goods.
    (iii) Transitivity and Consistency of Choice: – By transitivity of choice, it means that if a consumer prefers bundle A to B and bundle B to C, then invariably, the consumer must prefer bundle A to C. Symbolically, it is written as:
    If A > B and B > C; then A > C.
    By consistency of choice, it is assumed that the consumer is consistent in his choice making. If two bundles A and B are available to the consumer, if the consumer prefers bundle A to B in one period, he cannot choose bundle B over A nor treat them as equal. Symbolically:
    If A > B, then B > A and A ≠ B
    (iv) Diminishing Marginal Rate of Substitution (MRS):- MRS is the rate at which the consumer can exchange between two goods and still be at the same level of satisfaction. This assumption is based on the fact that the preferences are ranked in terms of indifference curves which are assumed to be convex to the origin.
    (v) The Total Utility of the consumer depends on the quantities of the commodities consumed. That is, the total utility is the addition of the different utilities. u = f(q1, q2 —– qn)
    (vi) Non Satiation: – it is assumed that the consumer would always prefer a larger bundle of goods to a smaller bundle of the same good. He is never over supplied with goods within the normal range of consumption.

    3. The demand for labor is an economics principle derived from the demand for a firm’s output. That is, if demand for a firm’s output increases, the firm will demand more labor, thus hiring more staff.

  52. Avatar Ajana Patrick Chibuzor says:

    NAME: AJANA PATRICK CHIBUZOR
    LEVEL: 100L
    DEPARTMENT: SOCIOLOGY AND ANTHROPOLOGY
    REG NO: 10017358HI
    ASSIGNMENT: ECO 101
    EMAIL: ajanapatrick66tlfs@gmail.com

    1. Briefly discuss the elementary theory of utility.
    Utility in economics was first coined by the noted 18th-century Swiss mathematician Daniel Bernoulli. In economics, utility is a term used to determine the worth or value of a good or service. More specifically, utility is the total satisfaction or benefit derived from consuming a good or service. Economic theories based on rational choice usually assume that consumers will strive to maximize their utility. The economic utility of a good or service is important to understand because it directly influences the demand, and therefore price, of that good or service. In practice, a consumer’s utility is usually impossible to measure or quantify. However, some economists believe that they can indirectly estimate what is the utility of an economic good or service by employing various models.

    2. Mention and discuss the different views of utility according to the two schools of thoughts which you have been taught.
    a. Cardinal school of thought: This approach emphasizes that utility is measurable. That is, after consuming a given quantity of a commodity the consumer can simply evaluate his satisfaction through the use of figures which range from zero to infinity. ASSUMPTIONS OF CARDINAL APPROACH.
    i. Utility is measurable
    ii. The consumer is rational
    iii. There is diminishing marginal utility
    iv. Total utility (TU) depends on the quantity consumed.
    v. Money income of the consumer is held constant.
    b. Ordinal school of thought: The ordinal utility approach is a school of thought that believes that utility cannot be measured quantitatively, that is, utility is not additive rather it could only be ranked according to preference. The consumer must be able to determine the order of preference when faced with different bundles of goods by ranking the various ‘baskets of goods’ according to the satisfaction that each bundle gives. For instance, if a consumer derives 3 utils from the consumption of one unit of commodity X and 12 utils from the consumption of commodity
    Y, this means that the consumer derives more satisfaction from consuming commodity Y than from commodity X. Though to the cardinals, the consumer derives four times more utility from one unit of Y than from X. The ordinal utility theory explains consumer behaviour by the use of indifference curve.
    4.1 Assumptions of Ordinal Utility Approach
    (i) Rationality: – The consumer is assumed to be rational meaning that he aims at maximizing total utility given his limited income and the prices of goods and services.
    (ii) Utility is Ordinal: – According to this assumption, utility is assumed not to be measurable but can only be ranked according to the order of preference for different kinds of goods.
    (iii) Transitivity and Consistency of Choice: – By transitivity of choice, it means that if a consumer prefers bundle A to B and bundle B to C, then invariably, the consumer must prefer bundle A to C. Symbolically, it is written as:
    If A > B and B > C; then A > C.
    By consistency of choice, it is assumed that the consumer is consistent in his choice making. If two bundles A and B are available to the consumer, if the consumer prefers bundle A to B in one period, he cannot choose bundle B over A nor treat them as equal. Symbolically:
    If A > B, then B > A and A ≠ B
    (iv) Diminishing Marginal Rate of Substitution (MRS):- MRS is the rate at which the consumer can exchange between two goods and still be at the same level of satisfaction. This assumption is based on the fact that the preferences are ranked in terms of indifference curves which are assumed to be convex to the origin.
    (v) The Total Utility of the consumer depends on the quantities of the commodities consumed. That is, the total utility is the addition of the different utilities. u = f(q1, q2 —– qn)
    (vi) Non Satiation: – it is assumed that the consumer would always prefer a larger bundle of goods to a smaller bundle of the same good. He is never over supplied with goods within the normal range of consumption.

    3. Explain the demand for and pricing of productive factors emphasizing on the labour market.

    The demand for labor is an economics principle derived from the demand for a firm’s output. That is, if demand for a firm’s output increases, the firm will demand more labor, thus hiring more staff.

  53. Avatar Muoto Chukwunecherem Faith says:

    Name: Muoto Chukwunecherem Faith.
    Reg number: 2017/241249
    email address: muotofaith@gmail.com

    1. Utility theory in economics pertains to the value or worth of a certain good, service, or item. It suggests that goods, services, and items can be ranked according to their usefulness. Utility theory is based on the fact that satisfaction which consumers derived from consumption of goods and services can be measure quantitative.

    2.Cardinal Utility. To help with this quantitative measurement of satisfaction, economists assume a unit known as a “util” to represent the amount of psychological satisfaction a specific good or service generates for a subset of people in various situations.

    The concept of a measurable util makes it possible to treat economic theory and relationships using mathematical symbols and calculations.

    However, it separates the theory of economic utility from actual observation and experience, since “utils” cannot actually be observed, measured, or compared between different economic goods or between individuals.

    Total Utility: Total Utility
    If utility in economics is cardinal and measurable, the total utility (TU) is defined as the sum of the satisfaction that a person can receive from the consumption of all units of a specific product or service.

    Marginal Utility: Marginal Utility
    Marginal utility (MU) is defined as the additional (cardinal) utility gained from the consumption of one additional unit of a good or service or the additional (ordinal) use that a person has for an additional unit.

    Ordinary Utility: Ordinal Utility
    Early economists of the Spanish Scholastic tradition of the 1300s and 1400s described the economic value of goods as deriving directly from this property of usefulness and based their theories on prices and monetary exchanges.

    3. The law of supply and demand combines two fundamental economic principles describing how changes in the price of a resource, commodity, or product affect its supply and demand.

    As the price increases, supply rises while demand declines. Conversely, as the price drops supply constricts while demand grows

  54. Avatar Muoto Chukwunecherem Faith says:

    1. Utility theory in economics pertains to the value or worth of a certain good, service, or item. It suggests that goods, services, and items can be ranked according to their usefulness. Utility theory is based on the fact that satisfaction which consumers derived from consumption of goods and services can be measure quantitative.

    2.Cardinal Utility. To help with this quantitative measurement of satisfaction, economists assume a unit known as a “util” to represent the amount of psychological satisfaction a specific good or service generates for a subset of people in various situations.

    The concept of a measurable util makes it possible to treat economic theory and relationships using mathematical symbols and calculations.

    However, it separates the theory of economic utility from actual observation and experience, since “utils” cannot actually be observed, measured, or compared between different economic goods or between individuals.

    Total Utility: Total Utility
    If utility in economics is cardinal and measurable, the total utility (TU) is defined as the sum of the satisfaction that a person can receive from the consumption of all units of a specific product or service.

    Marginal Utility: Marginal Utility
    Marginal utility (MU) is defined as the additional (cardinal) utility gained from the consumption of one additional unit of a good or service or the additional (ordinal) use that a person has for an additional unit.

    Ordinary Utility: Ordinal Utility
    Early economists of the Spanish Scholastic tradition of the 1300s and 1400s described the economic value of goods as deriving directly from this property of usefulness and based their theories on prices and monetary exchanges.

    3. The law of supply and demand combines two fundamental economic principles describing how changes in the price of a resource, commodity, or product affect its supply and demand.

    As the price increases, supply rises while demand declines. Conversely, as the price drops supply constricts while demand grows

  55. Avatar Enemuo Chinazaekpere Maureen says:

    Name : Enemuo Chinazaekpere Maureen
    Department : Nursing Science
    Reg No. 2021/243539

    What does Utility Theory mean?
    Utility theory in economics pertains to the value or worth of a certain good, service, or item. It suggests that goods, services, and items can be ranked according to their usefulness. The premise was initially theorized by Swiss mathematician, Daniel Bernoulli, in the 18th century. Bernoulli founded the idea with regard to the differing values of things. With respect to theory, the utility of an item tends to be closely correlated to its price. An item such as gold, which is very useful and thus has great utility (combined with its scarcity), is very expensive.
    Utility refers to the ability of goods or services to satisfy unlimited human wants or needs. It can also be viewed as satisfaction, pleasure or fulfillment an individual derives from the consumption of goods and services. The concept of utility is used to express consumer’s tastes and preferences. The analysis of consumer tastes and preferences is a crucial step in determine how a consumer maximizes satisfaction in spending income .
    The utility of a consumer is relatively hard to measure. However, it can be determined indirectly with consumer behavior theories, which assume that consumers will strive to maximize their utility with the resources available to them. Thus when a consumer derives satisfaction from consuming goods or services, it can be said that the goods or services consumed or utilized possesses utility, which is relative to the consumer depending on time, place, form and possession.
    Types of Utility
    1. Time Utility : This is the ability of a commodity or service to satisfy a consumer’s needs or wants at a particular time. This means that a commodity or service does not satisfy wants all the time. Some goods may not possess utility immediately they are produced. Such goods will have to be warehoused until when they are needed to satisfy consumer’s needs or wants. On some occasions, the producers deliberately warehouse their goods after production in order to command higher prices.
    2. Form Utility : This is the transformation of a commodity from one form to another for the commodity to satisfy consumer’s wants or needs. This means that the commodity or goods does not possess the utility power in its original form. For instance, flour does not satisfy the immediate want of consumers till when changed to bread or cake.
    3. Place Utility : Some goods do not satisfy wants in places where they are produced or found. For them to satisfy consumer’s wants they have to be shifted to other places where they will be demanded. By so doing, place utility will be added to them.
    Place Utility is also the ability of goods and services to satisfy a need within a location and it is a function of distribution channels and the physical location at which goods or services are sold. For E.g, a bookshop has no satisfaction within a construction site but will satisfy a need if found within a citadel of learning. Another example, is agricultural raw materials like rubber and cocoa are produced in large quantity in the west Africa and transported to European nations where they satisfy industrial needs.
    4. Possession Utility : This refers to the satisfaction derived from the ownership of goods and services. It explains the benefits one derives from owning and using certain products. The more “useful” a product is to an individual when owned, the higher its possession utility.
    This means that goods that are owned have a greater utility ( satisfaction) than goods which are borrowed. For e.g, a man who owns a car has a greater satisfaction from his car than a man who borrowed one.

    TOTAL UTILITY
    This is the total amount of satisfaction a consumer derives from the consumption of a particular commodity at a point in time. The amount of satisfaction derived from commodities increase with their consumption. The more the quantity of goods available to a consumer, the more the total utility derived from them.
    However, the amount of satisfaction or utility received from the consumption of goods does not increase at equal rate to the quantity of goods consumed. The consumer has a saturation point in the consumption of a particular commodity at a given time.

    MARGINAL UTILITY
    This means the additional satisfaction a consumer derives from the consumption of additional unit of a particular commodity. It is then the change in the total utility as a result of the consumption of additional unit of a commodity. The consumption of additional units of a commodity may yield more or less marginal satisfaction or utility.

    AVERAGE UTILITY
    This is the amount of satisfaction a consumer derives from the consumption of a unit of commodity. Average utility is arrived at by dividing the total amount of utility derived by the total number of commodities consumed.

    2.
    There are basically two schools of thought in the analysis of utility and they are as follows :
    1. Cardinal School of thought
    2. Ordinal School of thought
    CARDINAL SCHOOL OF THOUGHT
    This approach emphasizes that utility is measurable. That is, after consuming a given quantity of a commodity, the consumer can simply evaluate his satisfaction through the use of figures which range from zero to infinity.
    In another definition, Cardinal utility is a quantitative approach to measuring utility. It presents the utility of something as a fixed number – it’s an exact measure of utility. An individual can rank goods or services according to their cardinal utility by comparing the utility numbers derived from the goods or services.
    For example
    A bunch of 20 bananas can be said to have a cardinal utility of 20, whereas a bunch of 10 only has a utility value of 10.
    ORDINAL SCHOOL OF THOUGHT
    Ordinal utility is a relative measure of utility. It describes how one can determine the value of a good or service by comparing it to another. This measurement only captures which good or service is better, not how much better it is. Customers might assign value to goods or services according to ordinal utility.
    For example
    A man asks his friend which one of two local barbershops is better. His friend tells him barber B is better because his skills are more refined. This is a relative measure as one can’t quantitatively measure how much better the one barber cuts hair compared to the other.

    3.
    Factors of Production
    The Factors of Production is a term used to categorize all of the resources and contributions that go into producing a good or service. Since these goods and services make up a region’s economy, the Factors of Production have a direct connection to how the economy functions. If any of the Factors of Production are scarce or in high demand, it effects and impacts the economy, because the product will then be sold for a higher price or consumed at a greater rate. It is important to remember that the Factors of Production do not necessarily produce the final goods and services that get sold. Often, the Factor of Production will produce an intermediate good or service, or something that then gets translated into a final product in later stages.
    The four Factors of Production are Land, Labor, Capital, and Entrepreneurship, and these are the things that create all of the goods and services that make up an economy. The Factors are unique in themselves, but often also work together in the production of what gets dispensed into society. Listed below are each of the Factors of Production explaining exactly what it is comprised of and also how it is distinctly important to the systems of production.
    LAND
    Land as a factor of production is a free gift of nature and is fixed. It is the oldest factor of production in the sense that it had been on earth before man working on it. Land in Economics, does not include only hard surface of the earth but all other free gifts of nature like water, forest, mineral resources, etc. Unlike other factors of production, the supply for land is limited. Land includes any natural resource used to produce goods and services; anything that comes from the land. Some common land or natural resources are water, oil, copper, natural gas, coal, and forests. Land resources are the raw materials in the production process. These resources can be renewable, such as forests, or nonrenewable such as oil or natural gas. The reward for land is rent.
    CAPITAL
    Capital may be defined as wealth reserved or set aside for the production of further wealth. Capital means different things to different people. To a trader, money and his wares may mean his capital. A farmer’s hoes, matchets, other farming implements and seeds and seedlings may mean his capital, while for a hunter, his arrows, spears, bow, traps etc, may constitute his capital etc. However, capital as a man-made factor of production includes physical cash, building, machineries, semi-finished goods and other equipment and tools used in production. Capital as a factor of production refers to man-made, manufactured resources created by factories, machines and humans. While the term capital is commonly used to describe money, it’s used to describe value when discussing factors of production. Economists consider capital a production good and not a consumer good because of the way it’s used in production. For instance, hammers, forklifts, delivery vehicles and computers can all be capital production goods if used to create consumer products and generate income. The reward for capital is interest.
    Example: Capital refers to the essential equipment and other manmade assets used to start, grow and continue a business venture, such as computers or heavy manufacturing machinery.
    Just like other factors of production, capitals plays a crucial role in production of services.
    LABOUR
    Labour is defined as any human input to an economic venture. As a factor of production, labour is any work performed by people contributing to a good or service’s production. Over time, labour has been identified as the main source of economic value by political and economic theorists. Production employees are paid for their time, effort and expertise in wages, meaning nearly all economic ventures must invest in labour to create production and earn profit. Each industry needs labour to accomplish its specific goals, regardless of the varying cost of this labour. A change in the price of labour or some other factor of production will change the cost of producing any given quantity of the good or service. This change in the cost of production will change the quantity that suppliers are willing to offer at any price. An increase in factor prices should decrease the quantity suppliers will offer at any price, shifting the supply curve to the left. A reduction in factor prices increases the quantity suppliers will offer at any price, shifting the supply curve to the right.
    Suppose coffee growers must pay a higher wage to the workers they hire to harvest coffee or must pay more for fertilizer. Such increases in production cost will cause them to produce a smaller quantity at each price, shifting the supply curve for coffee to the left. A reduction in any of these costs increases supply, shifting the supply curve to the right. The reward for labour is wages and salaries.
    Example: Professionals, retail employees and skilled laborers alike contribute labor to accomplish production goals. For example, in the agricultural industry, labor may refer to the work performed in the field and within processing facilities by planters and farmers. In the technology industry, labor may refer to the work performed by project managers and product developers.
    ENTREPRENEUR
    The final Factor of Production is Entrepreneurship which details an individual’s ideas, concepts, and emotional effort to produce a product or service to introduce in the economy. The individual who is utilizing Entrepreneurship as a Factor of Production has combined the first three Factors, along with an original idea or pioneering spirit to create a profit. Some real-world examples of this Factor is Jeff Bezos’ initiation and development of the company ”Amazon” or the way that Howard Stern transformed his radio show into a national cultural experience. The reward for Entrepreneur is profit.

  56. Avatar Eze Loveth Nneoma says:

    Question 1.
    Discuss Utility in Economics
    What does utility mean in economics? Utility theory in economics pertains to the value or worth of a certain good, service, or item. It suggests that goods, services, and items can be ranked according to their usefulness.

    The premise was initially theorized by Swiss mathematician, Daniel Bernoulli, in the 18th century. Bernoulli founded the idea with regard to the differing values of things. Early economists of the Spanish Scholastic tradition of the 1300s and 1400s described the economic value of goods as deriving directly from this property of usefulness and based their theories on prices and monetary exchanges.
    This conception of utility was not quantified, but a qualitative property of an economic good.
    Later economists, particularly those of the Austrian School, developed this idea into an ordinal theory of utility, or the idea that individuals could order or rank the usefulness of various discrete units of economic goods.

    With respect to theory, the utility of an item tends to be closely correlated to its price. An item such as gold, which is very useful and thus has great utility (combined with its scarcity), is very expensive. Total utility is closely tied to the bare concept of utility. Total utility points to the aggregate amount of usefulness and fruition there is to be gained from the use of a specific good, service, or other item. Furthermore, the abstract measurement of utility is another key concept of the theory. Although it’s hard to calculate the exact utility of something, economists use abstract measurements to capture the usefulness of things.

    Additionally, utils can decrease as the number of products or services consumed increases.

    The four basic assumptions of utility theory are that a customer can rank any number of given options, more total utility is always better than less, a mix of goods is better than a set of one good, and customers are rational decision makers:
    * Ranking Options – An individual can rank any number of options based on their utility and the amount of satisfaction they’ll gain from each
    * More Total Utility is Better – For a good, service, or any other item, having more total utility is always better than having less as it points to more gratification found in the good, service, or item
    * Variety is Better – To have a diversified set of goods is better than to have a set of only one good. This is due to the increased usefulness found in differing goods compared to a single good
    * Rational Consumers – It is generally assumed that individuals are rational decision makers who’ll always make the best choice in light of utility
    There are also different types of utility, such as: f
    * Form Utility – Worth of the good or service based on the combined resources it took to create the good or service
    * Time Utility – The utility that is found in offering a good or service to consumers at the right time
    * Place Utility – Refers to offering a good or service in the right place for consumers’ easy accessibility
    * Possession Utility – The satisfaction a consumer gains from owning a certain product/good

    Cardinal Utility Economics
    What is a cardinal utility economics. Cardinal utility is a quantitative approach to measuring utility. It presents the utility of something as a fixed number – it’s an exact measure of utility. An individual can rank goods or services according to their cardinal utility by comparing the utility numbers derived from the goods or services.
    Ordinal Utility Economics
    What is an ordinal utility economics Ordinal utility is a relative measure of utility. It describes how one can determine the value of a good or service by comparing it to another. This measurement only captures which good or service is better, not how much better it is. Customers might assign value to goods or services according to ordinal utility.
    Utility in Economics: Supply and Demand
    Utility plays a big role in economics with respect to supply and demand. The law of diminishing marginal utility refers to how the utility gained from a certain good or service decreases as consumption increases. The more sodas you drink the less satisfaction you gain from drinking another soda.
    The more an individual consumes, the less the need.
    Economic utility can be estimated by observing a consumer’s choice between similar products. However, measuring utility becomes challenging as more variables or differences are present between the choices.

    Question 2.
    The different views of utility according to the two schools of thoughts
    Plato
    In Plato’s Republics and in his other writings we see a development of idealism.  According to him, every object of our experience is nothing but shadow.  That is saying that it is not in a pure state of reality.  Whatever we perceive is merely a poor copy of the reality that exists in another world which he designates as the world of Forms or Ideas.  Thus Plato’s Idealism talks of two worlds: the world of shadows and the world of Ideas.  The latter is replete with absolute perfection, real, unchangeable, universal and eternal realities whereas the former is the world of imperfect copies of things residing in the real world of ideas.  The implication is that every material thing must have its true copy in the world of ideas.  Idealist would say that even the pen you are having now is only an imperfect copy or a shadow of the ideal pen in the world Ideas.  Though there may ne various strands of idealism, the basic tenet is the emphasis that existence is explained in terms of the mind and its function.

    To put it more correctly again, the central thesis of idealism is that true knowledge can be derived from reason alone since it is only the faculty of reason that can grasp or extract from material things their spiritual forms or essences. 

    Educational Implication of Idealism
    1.    For Plato, Education simply means stimulation of the mind to recall that which it already knows before its being in the world.  He taught that the soul I born with innate knowledge which it lost with contact with the material world (human body).  Thus the concept of school and education is to create an enabling environment where students are encouraged to recall and embrace the concept of the Good and the universal truth that already exist in their soul which has been forgotten.  A
    2.    Idealism prefers the world of the spiritual to the world of material things.  Thus, in education, effort is made to create an enabling environment for the orientation of the youngster towards spiritual things or toward ideas.
    3.    As a result of the basic tenet of Idealism, educational curriculum is made of humanities (languages, literature, philosophy, religion, etc) and social studies.  These subject are idea-based.  Thus they are to awaken in students the basic ideas of the universe. 

    Realism
    Realism as a philosophy is traceable to Aristotle, the famous student of Plato, (384-322 BC).  He is acclaimed to be the father of realism just as Plato is believed to be the propounder of idealistic tradition in Western Philosophy.
    The contention of Realism is that objects of our sensual perceptions are real in themselves, whether the mind perceives it or know it or not.  The basic tenet of realism is that reality and knowledge of things can be acquires independent of the mind that perceives them.  In other words reality is extramentasl and not intramental, i.e. it exists outside the mind and not within the mind as ideas.  The implication of the realist epistemology is that everyday experience is true knowledge.  “Our dependable knowledge if external reality is possible.  Physical reality asserts, as fact, that the actual sticks, stones and trees of the universe exist whether or not there is a human mind to perceive them”.  Ozmon & Craver (1995).  “The realist prioritizes a worl of ‘things; as opposed to a world of idea Jacobsen, (1842-1910).
    Some of the proponents of Realism are Baruch Spinoza (1632-1677), John Locke (1632-1704), American Philosopher-Psychologist, William James, (1842-1910), etc.
    Realism upholds that the view that matter is real and not shadows or “copies” of the real which exist in the spiritual/immaterial world.

    Realism is like an umbrella term that covers many other philosophies which can be said to be sub-schools of realism.  These sub-schools believe that reality is perceptible, concrete and outside the mind.  Thus we have the following ‘Realisms’.
    1.    Aristotelian Realism
    2.    Scholastic Realism
    3.    Natural or Scientific Realism
    Aristotelian Realism:  This is also known as classical realism because it is the premier realism of western culture.  As the name suggests, it is an intellectual product of Aristotle.  He was a student of Plato, but disagreed with his master on what is the nature of human knowledge.  Do we actually perceive things the way they are, or do we perceive them as they appear to us?  That is to ask if the concrete data of our experiences are real or imaginary?  That is why he wrote on almost all the fields of human knowledge: poetry, rhetoric, ethics, politics, meteorology, embryology, physics, mathematics, metaphysics, anatomy, physiology, logic, dreams and so forth.
    “Aristotle viewed reality as a uniting of both actuality (form) and potentiality (matter).  Both must be united in order for something to be real or to truly exist”, and that is the principle of his Aristotelian Hylemorphism.  All things are made of matter. 
    Aristotle described the relationship between form and matter with the Four Causes:
    * Material cause – the matter from which something is made;
    * Formal cause – the design that shapes the materials object;
    * Efficient cause – the agent that produces the object; and
    * Final cause – the direction toward which the object is tending.
    Through these different forms, Aristotle demonstrated that matter was constantly in a process of change.  He believed that God, the Ultimate Reality held all creation together.  Organization was very important in Aristotle’s philosophy. 
    Furthermore, realism unlike idealism does not talk about dual world of matter and form in order to explain human knowledge.  For realists, there is only “a world” of reality.
    Educational Implications of Realism
    1.    Religious realists do not limit knowledge to the phenomenal world alone, but hold that knowledge acquired through the senses is real; rational knowledge does not form the entire domain of reality.  There is a being responsible for their existence.  The cosmos are real, and they point to the existence of a higher Being.  Furthermore, the study of God reveals that man always depends on God for his perfection and self-fulfillment. Therefore, education must recognize and incorporate this fact. 
    2.    The scientific realism sees the environment and the training of the senses for perception as against empty memorization of abstract things.    The child is given enormous freedom to discover knowledge and is given freedom to think through situations rather than accepting authority as source of human knowledge.  One major criterion for knowledge here is the inductive method of observation, experimentation, formulation of hypothesis and laws which eventually form what is known today as scientific knowledge.    Education is better dome God-free.

    Pragmatism
    Pragmatism is generally viewed as American philosophy.  It emanated in the later part of the nineteenth century.  The proponents of this philosophical tradition are George Sanders Pierce (1839-1914), William James (1842-1910) and John Dewey (1839-1914) Pragmatism comes from the Greek word pragma meaning work. Pragmatists hold that activity or experiment is done first, and then on the basis of the result, principles and ideas derived. That is to say that the validity of any philosophical position is tested against its ability to solve current problem.  If a thing works in practice, them it is valuable, desirable, and should be upheld.  The implication is that nothing is absolutely good; everything is subject to change as situation demands.  “Both George Sanders Peirce and William James are often credited to have described pragmatism in part through the biblical allusion.  “By their fruits you shall know them”.  Hence pragmatism is also known as Experimentalism or consequentialism.
    Another characteristic of pragmatism is that it does not make any extramental reference to any authority outside the activity that test for sustainability of any philosophical position.  For example in America today, abortion is legally upheld because it serves the individual and helps the state in the management of population size.  In this sense, it is “ok” by their law. 
    It is, thus called Experimentalism because pragmatists believe in experiment as the only criterion of truth.  To them truth, reality, goodness and evil are all relative terms. 
    Pragmatism is called Consequentialism because any human activity is evaluated in terms of its consequences or results.  Change is the basic factor of pragmatism.  No truth is absolute and permanent.  It is always changing from time to time and from place to place.  Pragmatists do not believe in fixed, eternal and absolute values of life to be followed in all times, places and circumstances.  To them, only those ideals and values are true which result in some utility to mankind in a certain set of times.

    The central positions of Pragmatism are schematized as follows:
    1.     Faith in the present and future.
    2.     Change is the only real thing.  Everything else is provisional in the sense that the usefulness of any theory is sustained as long as it serves the purpose.  Truth is formed by its result.
    3.     Values are relative.  There is no such thing as ultimate value.
    4.     Critical intelligence is of great importance.  Knowledge obtained at any point in time is never an end in itself but a means to an end. 
    5.     Problems as the motives of truth.
    Educational Implications of Pragmatism
    This philosophy focuses on mental, religious and aesthetic modes of human activity.  Through activities, human being creates their own ideals and values.  Aspects of education should be suitable to human good and human growth.  According to pragmatists, educational process should promote human welfare.  Only flexible educational institutions can remain alive, active and satisfy the changing needs of the society and provide real experiences through activities.

    Question 3.
    The demand for and pricing of productive factors emphasizing on the labour market.
    The demand for labor is an economics principle derived from the demand for a firm’s output. That is, if demand for a firm’s output increases, the firm will demand more labor, thus hiring more staff. And if demand for the firm’s output of goods and services decreases, in turn, it will require less labor and its demand for labor will fall, and less staff will be retained.

    Labor market factors drive the supply and demand for labor. Those seeking employment will supply their labor in exchange for wages. Businesses demanding labor from workers will pay for their time and skills.

    Demand for labor is a concept that describes the amount of demand for labor that an economy or firm is willing to employ at a given point in time. This demand may not necessarily be in long-run equilibrium. It is determined by the real wage firms are willing to pay for this labor and the number of workers willing to supply labor at that wage.

    A profit-maximizing entity will command additional units of labor according to the marginal decision rule: If the extra output that is produced by hiring one more unit of labor adds more to total revenue than it adds to the total cost, the firm will increase profit by increasing its use of labor. It will continue to hire more and more labor up to the point that the extra revenue generated by the additional labor no longer exceeds the extra cost of the labor. This relationship is also called the marginal product of labor (MPL) in the economics community.

    Other Considerations in Demand for Labor
    According to the law of diminishing marginal returns, by definition, in most sectors, eventually the MPL will decrease. Based on this law: as units of one input are added (with all other inputs held constant) a point will be reached where the resulting additions to output will begin to decrease; that is marginal product will decline.

    Common Reasons for a Shift in Labor Demand
    * Changes in the marginal productivity of labor, such as technological advances brought on by computers
    * Changes in the prices of other factors of production, including shifts in the relative prices of labor and capital stock
    * Changes in the price of an entity’s output, usually from an entity charging more for their product or service

  57. Avatar EDEH BLESSING OLUCHUKWU says:

    Name : EDEH BLESSING OLUCHUKWU
    Department:Nursing science
    Reg number: 2019/244658
    Course :Eco 101
    Date: 13/03/2023
    Topic:Utility

    ASSIGNMENT
    1: Briefly discuss the elementary theory of utility.
    Utility refers to want satisfying power of a commodity. It is the satisfaction, actual or expected, derived from the consumption of a commodity. Utility differs from person- to-person, place-to-place and time-to-time. In the words of Prof. Hobson, “Utility is the ability of a good to satisfy a want”.
    Still, the concept of utility is very useful in explaining and understanding the behaviour of consumer.

    Total Utility (TU):
    Total utility refers to the total satisfaction obtained from the consumption of all possible units of a commodity. It measures the total satisfaction obtained from consumption of all the units of that good. For example, if the 1st ice-cream gives you a satisfaction of 20 utils and 2nd one gives 16 utils, then TU from 2 ice-creams is 20 + 16 = 36 utils. If the 3rd ice-cream generates satisfaction of 10 utils, then TU from 3 ice-creams will be 20+ 16 + 10 = 46 utils.

    TU can be calculated as:

    ADVERTISEMENTS:

    TUn = U1 + U2 + U3 +……………………. + Un

    Where:

    TUn = Total utility from n units of a given commodity

    U1, U2, U3,……………. Un = Utility from the 1st, 2nd, 3rd nth unit

    2: Mention and discuss the different views of utility according to the two schools of thought which you have been taught.
    Many theories describe the level of satisfaction. However, cardinal utility and ordinal utility are the two predominant school of thought of utility. The cardinal utility believes in measuring the satisfaction level in utils and the ordinal utility believes that the satisfaction level cannot be evaluated; however, it can be levelled.
    The different views of the two school
    Of thought include

    A. Definition

    Cardinal Utility: It explains that the satisfaction level after consuming any goods or services can be scaled in terms of countable numbers.

    ​Ordinal Utility: It explains that the satisfaction level after consuming any goods or services cannot be scaled in numbers. However, these things can be arranged in the order of preference.

    B.Measurement

    Cardinal Utility is measured based on utils.​Ordinal Utility is ranked based on satisfaction

    C.Realistic

    Cardinal Utility is less practical.​Ordinal Utility is more practical and sensible.
    Marginal Utility (MU):
    Marginal utility is the additional utility derived from the consumption of one more unit of the given commodity. It is the utility derived from the last unit of a commodity purchased. As per given example, when 3rd ice-cream is consumed, TU increases from 36 utils to 46 utils. The additional 10 utils from the 3rd ice-cream is the MU.

    In the words of Chapman, “Marginal utility is addition made to total utility by consuming one more unit of a commodity”.

    MU can be calculated as: MUn = TUn – TUn-1

    3: Demand for pricing of productive factors emphasizing on the labor market.
    Demand for a Factor of Production
    The demand for a factor is not a direct demand but it is an indirect or derived demand. The demand for labour, for example, is not demand for labour himself. It is in fact, demand for goods or services which the labour produces. Thus when demand for goods increases, the demand for the factors which produce those goods would also rise. If demand for goods is elastic, the demand for factors would also be elastic. Similarly when demand for goods is inelastic, the factor which produces it will also be inelastic. The demand for any given factor of production also depends upon the availability of other factors which co-operate with this factor in the process of production. Normally the demand for and price of a given factor will be higher if the co-operating factors are available in large. A third rule regarding the demand for a factor is what when more of a factor is employed, its marginal productivity is likely to fall and hence its demand and price are also,
    Factor pricing is associated with the prices that an entrepreneur pays to avail the services rendered by the factors of production. For example, an entrepreneur needs to pay wages to labor, rents for availing land, and interests for capital so that he/she can earn maximum profit. These factors of production directly affect the production process of an organization.

    In context of an economy, these four factors of production when combined together produce a net aggregate of products, which is termed as national income. Therefore, it is important to determine the prices of these four factors of production. The theory of factor pricing deals with the determination of the share prices of four factors of production, namely land, labor, capital and enterprise.

  58. Avatar EDEH BLESSING OLUCHUKWU says:

    Name: EDEH BLESSING OLUCHUKWU
    Department:Nursing science
    Reg number: 2019/244658
    Course :Eco 101
    Date: 13/03/2023
    Topic:Utility

    ASSIGNMENT
    1: Briefly discuss the elementary theory of utility.
    Utility refers to want satisfying power of a commodity. It is the satisfaction, actual or expected, derived from the consumption of a commodity. Utility differs from person- to-person, place-to-place and time-to-time. In the words of Prof. Hobson, “Utility is the ability of a good to satisfy a want”.
    Still, the concept of utility is very useful in explaining and understanding the behaviour of consumer.

    Total Utility (TU):
    Total utility refers to the total satisfaction obtained from the consumption of all possible units of a commodity. It measures the total satisfaction obtained from consumption of all the units of that good. For example, if the 1st ice-cream gives you a satisfaction of 20 utils and 2nd one gives 16 utils, then TU from 2 ice-creams is 20 + 16 = 36 utils. If the 3rd ice-cream generates satisfaction of 10 utils, then TU from 3 ice-creams will be 20+ 16 + 10 = 46 utils.

    TU can be calculated as:

    ADVERTISEMENTS:

    TUn = U1 + U2 + U3 +……………………. + Un

    Where:

    TUn = Total utility from n units of a given commodity

    U1, U2, U3,……………. Un = Utility from the 1st, 2nd, 3rd nth unit.

    2: Mention and discuss the different views of utility according to the two schools of thought which you have been taught.

    Many theories describe the level of satisfaction. However, cardinal utility and ordinal utility are the two predominant school of thought of utility. The cardinal utility believes in measuring the satisfaction level in utils and the ordinal utility believes that the satisfaction level cannot be evaluated; however, it can be levelled.
    The different views of the two school
    Of thought include

    A. Definition

    Cardinal Utility: It explains that the satisfaction level after consuming any goods or services can be scaled in terms of countable numbers.

    ​Ordinal Utility: It explains that the satisfaction level after consuming any goods or services cannot be scaled in numbers. However, these things can be arranged in the order of preference.

    B.Measurement

    Cardinal Utility is measured based on utils.​Ordinal Utility is ranked based on satisfaction

    C.Realistic

    Cardinal Utility is less practical.​Ordinal Utility is more practical and sensible.
    Marginal Utility (MU):
    Marginal utility is the additional utility derived from the consumption of one more unit of the given commodity. It is the utility derived from the last unit of a commodity purchased. As per given example, when 3rd ice-cream is consumed, TU increases from 36 utils to 46 utils. The additional 10 utils from the 3rd ice-cream is the MU.

    In the words of Chapman, “Marginal utility is addition made to total utility by consuming one more unit of a commodity”.

    MU can be calculated as: MUn = TUn – TUn-1

    3: Demand for pricing of productive factors emphasizing on the labor market.
    Demand for a Factor of Production
    The demand for a factor is not a direct demand but it is an indirect or derived demand. The demand for labour, for example, is not demand for labour himself. It is in fact, demand for goods or services which the labour produces. Thus when demand for goods increases, the demand for the factors which produce those goods would also rise. If demand for goods is elastic, the demand for factors would also be elastic. Similarly when demand for goods is inelastic, the factor which produces it will also be inelastic. The demand for any given factor of production also depends upon the availability of other factors which co-operate with this factor in the process of production. Normally the demand for and price of a given factor will be higher if the co-operating factors are available in large. A third rule regarding the demand for a factor is what when more of a factor is employed, its marginal productivity is likely to fall and hence its demand and price are also,
    Factor pricing is associated with the prices that an entrepreneur pays to avail the services rendered by the factors of production. For example, an entrepreneur needs to pay wages to labor, rents for availing land, and interests for capital so that he/she can earn maximum profit. These factors of production directly affect the production process of an organization.

    In context of an economy, these four factors of production when combined together produce a net aggregate of products, which is termed as national income. Therefore, it is important to determine the prices of these four factors of production. The theory of factor pricing deals with the determination of the share prices of four factors of production, namely land, labor, capital and enterprise.

  59. Avatar UGWU CHIOMA LOVELYN says:

    NAME: UGWU CHIOMA LOVELYN
    DEPARTMENT: BUSINESS EDUCATION
    REG NUMBER:2021/242881
    COURSE : ECO 101
    LEVEL:100 level
    FACULTY: VOCATIONAL AND TECHNICAL EDUCATION

    (No 1)
    THE ELEMENTARY THEORY OF UTILITY

    What does “UTILITY” mean in Economics?
    Utility theory in Economics partains to the value or Worth of a certain good, services, or item.It suggests that goods, services and items can be ranked according to their usefulness.The premise was initially theorized by SWISS Mathematician, Daniel Bernoulli, in the 18th century.Bernouli founded the idea with regard to the differing values of things.With respect to theory, the utility of an item tends to be closely correlated to it’s price.An item such as gold, which is very useful and thus has great utility (combined with it’s scarcity),is very expensive.Total utility is closely tied to the bare concept of utility.Total utility points to the aggregate amount of usefulness and fruition there is to be gained from the use of a specific goods, services or other items.
    Further more, the abstract measurement of utility is another key concept of the theory.Although it’s hard to calculate the exact utility of something, economists use abstract measurements to capture the usefulness of things.The four basic assumptions of utility theory are that a customer can rank any number of given options, more total utility is always better than less, a mix of goods is better than a set of one good, and customers are rational decision makers:
    _Ranking options_ An individual can rank any number of options based on their utility and the amount of satisfaction they will gain from each.
    _ More total utility is better for a good service,or any other item, having more total utility is always better than having less as it points to more gratification found in the good, service,or item.
    _ Variety is better _ To have a diversified set of goods is better than to have a set of only one good.This is due to the increased usefulness found in differing goods compared to a single good.
    Rational customers_ It is generally assumed that individuals are rational best choice in light of utility.
    There are also different types of utility such as:
    (1)Form Utility_ Worth of goods or services based on the combined resources it took to create the good or service.
    (2) Time utility_ The utility that is found in offering a good or service to customers at the right time.
    (3) Place utility_Refers to offering a good or service In the right place for customer’s easy accessibility.
    (4) Possession utility_ The satisfaction a consumer gains from owning a certain product/good.
    We all know that the concept of happiness is impossible to quantify or put Into numerical terms,but economists will try anyway; that brings us to the economics concept of utility.
    Utility is the amount of satisfaction that you will get from the consumption of a product or service.Economists use an abstract measure for the amount of satisfaction you receive from something;it is called a ‘ util’ .A util is an abstraction because it isn’t something in physical world like an inch or a pound.it is something inside your head ,it represents one unit of satisfaction or happiness.You might get 25 utils of satisfaction from eating a bowl of ice cream while someone else would only get 5 utils of satisfaction.

    (No 2)
    DIFFERENT VIEWS OF UTILITY ACCORDING TO THE TWO SCHOOLS OF THOUGHTS

    There are basically two schools of thoughts in the analysis of utility and they are as follows:
    (1) Cardinal school of thought &
    (2)Ordinal school of thought

    (1)
    CARDINAL SCHOOL OF THOUGHT:
    This approach emphasizes that utility is measurable.That is, after consuming a given quantity of a commodity the consumer can simply evaluate his satisfaction through the use of figures which range from zero to infinity.

    ASSUMPTIONS OF CARDINAL UTILITY
    ( I) Utility is measurable
    (ii) The consumer is rational
    (III) There is diminishing marginal utility
    ( iv) Total utility (TU) depends on the quantity consumed
    (V) Money income of the consumer is held constant.
    CONCEPT OF TOTAL, AVERAGE AND MARGINAL UTILITY.
    TOTAL UTILITY : this is the total amount of satisfaction a consumer derives from the consumption of a particular commodity at a point in time.Consumer’s utility increases as the quantity consumed increase but not at equal rate because consumer has a saturation point in the consumption of particular commodity at a given time.
    AVERAGE UTILITY : This is derived by dividing total utility by the units of the commodity consumed,that is the satisfaction which a consumer derives per unit of a commodity consumed.AU=TU/Q
    MARGINAL UTILITY: This means the additional satisfaction a consumer derives from the consumption of additional unit of a particular commodity.It is then the change in total utility as a result of consumption of additional unit of a commodity.

    THE LAW OF DIMINISHING MARGINAL UTILITY
    The law of diminishing marginal utility states that other things being equal,the marginal utility if a commodity to an individual decreases with extra unit of that commodity he consumes .In other words,the law states that if a consumer goes on consuming successive equal increments in the quantity of a commodity, then the increase in total utility resulting will become smaller and smaller, that is, satisfaction per extra unit will start falling . For instance,a beer drinker may derive maximum satisfaction in the first three bottles , after which decreases in satisfaction may set in as more and more bottles of beers are consumed untill he maybe unable to consume anymore.
    UTILITY MAXIMIZATION
    Utility maximization is also known as equilibrium of the costumer.A point where a consumer derives derives maximum satisfaction when his marginal utility equates the price of commodity consumed.That is,the additional utility derived from the consumption of additional commodity is equal to price of the commodity.

    CONSUMER SURPLUS
    Consumer surplus is defined as the difference between the amount a consumer budgeted to pay for a commodity based on the anticipated Level of satisfaction, and the amount he actually paid to have it.When he consumes the first unit,he was willing to pay as much as #50, but the commodity’s price was #30.Thus,he saved #20.Therefore any amount above the market price of #30 represents the consumer’s surplus.

    ORDINAL SCHOOL OF THOUGHT
    The term ordinal means making or ordering like first, second and third.Thus, the Ordinal utility analysis implies that the consumer is capable of simply comparing the utility that he derives from different goods or different units.It means ordinal utility does not require that the consumer should be in a position to measure the utility from different goods or different combinations of goods.
    The Ordinal approach to consumer utility states that the utility/satisfaction cannot be measured in exact numbers but can only be ranked or put into order.For example, if a consumer prefers ice cream to chocolate,it is not required to say that utility of 100 ice cream is twice as desirable as utiliy of 50 from chocolate.There is no need for quantitative concept of utiliy in ordinal analysis.An ordinal measure can be thought of as a list for high to low, good to bad,top to bottom, and are often based on subjective/individual judgement of items.
    The notion of ordinal utility has founded on the following axioms:
    1. A consumer can’t express his utiliy in the quantitative terms.However, it is likely for him to express which of two products he favors.
    2. A consumer can rank or list entire merchandise he devours In the command of partially.

    ASSUMPTIONS OF ORDINAL UTILIY
    (1) Rationality of consumers: this assumes rational consumers whose objective is maximize the utiliy under the budget constraints.
    (2) ordinal measurement: the utiliy is measured ordinally by comparing the satisfaction whether higher or lower by consuming different bundles of goods .
    (3) Transitivity: according to this assumption,when there are three goods A,B and C and if the consumer chooses asA>B,B>C,then A>C.it is acknowledged as Transitivity in preference.
    (4) consistency: as per this assumption,the consumer’ remains consistent in choice.
    (5) Non_ satiety: the consumer always prefer moreover less if there is a choice available to him.

    ( No 3)
    DEMANDED FOR LABOR: DEFINITION, FACTORS, AND ROLE IN ECONOMY
    What is Demand for labor?
    When producing goods and services, business requires labor and capital as inputs to their production process.The demand for labor is an Economics principle derived from the demand for firms output.That is ,if demand for a firm’s output increases, the firm will demand more labor,thus hiring more staffs.And if demand for the firm’s output of goods and services decreases, in turn ,it will require less labor and it’s demand for labor will fall, and less staff will be retained.
    Labor market factors derive the supply and demand for labor .Those seeking employment will supply their labor in exchange for wages .
    Business demanding labor from workers will pay for their time and skills.
    BREAKING DOWN DEMAND FOR LABOR
    Demand for labor is a concept that describes the amount of Demand for labor that an econommy or firm is willing to employ at a giving point in time.This Demand may not necessarily be in long_run equilibrium.It is determined by the real wages firms are willing to pay for this labor and the number of workers willing to supply labor at the wage.A profit maximizing entity will command additional units of labor according to the marginal decision rule.If the extra output that is produced by hiring one more unit of labor adds more to total revenue than it adds to the total cost,the firm will Increase profit by increasing it’s use of labor.It will continue to hire more and more labor up to the point that the extra revenue generated by the additional labor no longer exceeds the extra cost of the labor.This relationship is also called the marginal product of labor ( MPL) in the Economics community.
    COMMON REASONS FOR A SHIFT IN LABOR DEMAND
    _ changes in the marginal productivity of labor such as technological advances brought on by computers.
    _ changes in the prices of other factors of production, including shifts in the relative prises of labor and capital stock.
    _ changes in price of an entity’s output, usually from an entity charging more for their product or service.

  60. Avatar Ezugwu Jane Chidimma says:

    Name: Ezugwu Jane Chidimma
    Reg number:2021/244100
    Department: Medical Radiography and Radiological sciences .
    Course:Econs 101.
    Date: 4/03/2023
    Questions.
    1: Briefly discuss the elementary theories of utility.
    2: Mention and discuss the different views of utility according to the two schools of thoughts which you have been taught.
    3: Explain the demand for and principles of productive factors emphasizing on the labor market.
    Answers.
    Question 1:
    Utility theory in economics pertains to the value or worth of a certain good, service, or item. It suggests that goods, services, and items can be ranked according to their usefulness.
    Utility theories are as follows:
    1) Ordinal utility: When using ordinal utility, consumers assign preferences, but not values, to different products.

    For example, someone might say they prefer action films to comedies and comedies to dramas, but they won’t say those action movies are worth 5 points of utility, comedies worth 4, and dramas worth 1.

    Some economists argue that ordinal utility is a more realistic way to look at utility theory. Most consumers don’t have a scoring system that they use to make decisions about what to buy. They simply know their preferences and make decisions based on these feelings.
    2: Cardinal utility: Cardinal utility assumes that people can assign specific values to products and use those values to make a decision.

    For example, a consumer can determine that they receive precisely 20 points of utility from a ticket to a baseball game and 30 points of satisfaction from seats at a hockey game. Thus, the consumer always prefers hockey tickets to baseball tickets, assuming comparable prices.

    Cardinal utility is part of rational choice theory, which argues that people work to achieve utility maximization. Cardinal utility is also crucial for the efficient allocation of goods and welfare economics. An economy reaches allocative efficiency when marginal cost (the cost of each additional good) and marginal utility (the value of each additional good) are equal.
    3: Total utility: Total utility is the complete level of satisfaction or value that a person receives from consuming a specific product. This contrasts with marginal utility, which is the value that someone gets from using an additional unit of a product.
    Question 2:
    1: Form Utility

    Form utility refers to how much value a consumer receives from a product or service in a way that they actually need. Form utility is, therefore, the incorporation of customer needs and wants into the features and benefits of the products being offered by the company.Form utility may include offering consumers lower prices, more convenience, or a wider selection of products. The goal of these efforts is to increase and maximize the perceived value of the products.
    2: Time Utility

    This type of utility occurs when a company provides goods and services when consumers demand or need them. Companies analyze how to create or maximize the time utility of their products and adjust their production process, logistical planning of manufacturing and delivery. So when demand increases, the company should respond by producing and delivering more of the product to the market. Failure to factor time utility into the equation can lead to a drop in the customer base, which can result in a loss of revenue.
    3:Place utility:
    Refers to making goods or services available in locations that allow consumers to easily access products and services.

    While most people typically think of place utility as a physical or brick-mortar location, such as a retail store or shopping mall, the digital age helps broaden the definition of availability. For instance, companies can maximize place utility through their website. Those with effective search engine optimization strategies can improve their place utility.
    4: Possession Utility

    Possession utility is the amount of usefulness or perceived value a consumer derives from owning a specific product and being able to use it as soon as possible. The basic premise behind this utility is that consumers should be able to use a specific good or service as soon as they’re able to purchase or obtain it. For instance, someone who purchases the latest iPhone won’t get much utility for the product if Apple has it on backorder and can’t manufacture and ship it to the consumer in a timely fashion.
    However, cardinal utility and ordinal utility are the two predominant schools of thought of utility. The cardinal utility believes in measuring the satisfaction level in utilities and the ordinal utility believes that the satisfaction level cannot be evaluated; however, it can be levelled.
    Question 3: When producing goods and services, businesses require labor and capital as inputs to their production process. The demand for labor is an economics principle derived from the demand for a firm’s output. That is, if demand for a firm’s output increases, the firm will demand more labor, thus hiring more staff. And if demand for the firm’s output of goods and services decreases, in turn, it will require less labor and its demand for labor will fall, and less staff will be retained.
    Demand for labor is a concept that describes the amount of demand for labor that an economy or firm is willing to employ at a given point in time. This demand may not necessarily be in long-run equilibrium. It is determined by the real wage firms are willing to pay for this labor and the number of workers willing to supply labor at that wage.
    A profit-maximizing entity will command additional units of labor according to the marginal decision rule: If the extra output that is produced by hiring one more unit of labor adds more to total revenue than it adds to the total cost, the firm will increase profit by increasing its use of labor. It will continue to hire more and more labor up to the point that the extra revenue generated by the additional labor no longer exceeds the extra cost of the labor. This relationship is also called the marginal product of labor (MPL) in the economics community.
    Other Considerations in Demand for Labor

    According to the law of diminishing Marginal returns(MR), by definition, in most sectors, eventually the MPL will decrease. Based on this law: as units of one input are added (with all other inputs held constant) a point will be reached where the resulting additions to output will begin to decrease; that is marginal product will decline.

    Another consideration is the Marginal revenue product of labour (MRPL), which is the change in revenue that results from employing an additional unit of labor, holding all other inputs constant. This can be used to determine the optimal number of workers to employ at a given market wage rate. According to economic theory, profit-maximizing firms will hire workers up to the point where the marginal revenue product is equal to the wage rate because it is not efficient for a firm to pay its workers more than it will earn in revenues from their labor.

  61. Avatar Ayogu Mercy Chikodili says:

    Name: Ayogu Mercy Chikodili
    Faculty: Social Science
    Dept: Public administration and local government
    Reg.No: 2021/245854

    Answers

    1. Utility can be defined as the fulfilment or satisfaction a consumer derives from the consumption of a good(s) or service(s).Theory of utility is a concept in economics explains how individuals make decisions based on satisfaction they derive from consumption of goods and services.
    The theory of utility assumes that individuals are rational and seek to maximize their utility and also to make known that individuals have a limited budget and must make choices about how to allocate their resources in order to obtain the most satisfaction.
    The theory of utility has important implications for a variety of economic concepts, including demand theory, consumer behavior and welfare economics.

    2a.Cardinal school of thought
    2b. Ordinal school of though.

    The cardinal school of thought emphasizes that utility is measurable. It argues that after the consumption of a commodity, the consumer can simply evaluate his satisfaction through the use of figures ranging from zero to infinity. One’s satisfaction can be measured in utils.

    The Ordinal school of thought emphasizes that the satisfaction of a consumer from the consumption of goods cannot be expressed numerically but can only be ranked or put to order.This approach argues that utility is completely a psychological element and cannot be expressed in numbers.

    3.Process of business production makes use of capital and labour to create goods and services.A corporation will require more labour market and recruit more workers if there is high demand for it’s output as also.if there is less.demand for it’s output there will be a reduction in employing labour.

  62. Avatar EZEH EKENEDILICHUKWU DAVID says:

    NAME : EZEH EKENEDILICHUKWU DAVID
    REG.NO : 2019/250525
    DEPARTMENT : NURSING SCIENCES
    E-MAIL : ekeneezeh6@gmail.com

    1) Briefly discuss the elementary theory of utility.
    Utility can be defined as the satisfaction derived from buying a good or service at a particular time. The economic utility of a good or service directly influences demand and therefore affects also the price of that good or service
    Utility theory is based on the fact that “satisfaction which consumers derive from consumption of goods and services can be measure quantitatively”.

    2) Mention and discuss the different views of utility according to the two schools of thoughts which you have been taught.

    Customers are the ultimate user of all goods and services and the producer’s main aim is to satisfy his customer’s needs. However, the level of satisfaction differs from individual to individual due to various factors. The measurement of this utility leads us to the two major schools of thought – Cardinal Utility and Ordinal Utility.
    The Cardinal Utility measures the satisfaction level in utils and the ordinal utility believes that the satisfaction level cannot be measured; however, it can be leveled.
    Cardinal Utility explains that the satisfaction level after consuming any goods or services can be measured in terms of countable numbers. This theory was applied by Prof. Marshall. Utility is measured based on utils. A typical example is Bread gives Ade 60 utils of satisfaction, whereas pizza gives him only 40 utils.
    Ordinal Utility explains that the satisfaction level after consuming any goods or services cannot be measured in numbers. However, these things can be arranged in the order of preference. This theory was applied by Prof. J R Hicks and it is more practical than the Cardinal Utility. Utility is ranked based on satisfaction. A typical example of Ordinal utility is Ade gets more satisfaction from bread as compared to pizza.

    3) Explain the demand for and pricing of productive factors emphasizing on the labour market.

    Factors of production are the inputs needed for the creation of a good or service. These include labor, entrepreneurship, and capital.

    The demand for a factor of production is derived from the demand for the goods and services it is used to produce. It is the value to a firm of hiring one more unit of a factor of production, which equals price of a unit of output multiplied by the marginal product of the factor of production

    In economics, a factor price is the unit cost of using a factor of production.

    Some market factors that affect Price include Costs and Expenses, supply and Demand, consumer perceptions and Competition.
    Factors that affect the determination of the price of a product or a service includes Cost of Product and Demand for the Product.

  63. Avatar EDEH BLESSING OLUCHUKWU says:

    Name :EDEH BLESSING OLUCHUKWU
    Department:Nursing science
    Reg number: 2019/244658
    Course :Eco 101
    Date: 13/03/2023
    Topic:Utility

    ASSIGNMENT
    1: Briefly discuss the elementary theory of utility.
    Utility refers to want satisfying power of a commodity. It is the satisfaction, actual or expected, derived from the consumption of a commodity. Utility differs from person- to-person, place-to-place and time-to-time. In the words of Prof. Hobson, “Utility is the ability of a good to satisfy a want”.
    Still, the concept of utility is very useful in explaining and understanding the behaviour of consumer.

    Total Utility (TU):
    Total utility refers to the total satisfaction obtained from the consumption of all possible units of a commodity. It measures the total satisfaction obtained from consumption of all the units of that good. For example, if the 1st ice-cream gives you a satisfaction of 20 utils and 2nd one gives 16 utils, then TU from 2 ice-creams is 20 + 16 = 36 utils. If the 3rd ice-cream generates satisfaction of 10 utils, then TU from 3 ice-creams will be 20+ 16 + 10 = 46 utils.

    TU can be calculated as:

    ADVERTISEMENTS:

    TUn = U1 + U2 + U3 +……………………. + Un

    Where:

    TUn = Total utility from n units of a given commodity

    U1, U2, U3,……………. Un = Utility from the 1st, 2nd, 3rd nth unit.

    2: Mention and discuss the different views of utility according to the two schools of thought which you have been taught.
    Many theories describe the level of satisfaction. However, cardinal utility and ordinal utility are the two predominant school of thought of utility. The cardinal utility believes in measuring the satisfaction level in utils and the ordinal utility believes that the satisfaction level cannot be evaluated; however, it can be levelled.
    The different views of the two school
    Of thought include

    A. Definition

    Cardinal Utility: It explains that the satisfaction level after consuming any goods or services can be scaled in terms of countable numbers.

    ​Ordinal Utility: It explains that the satisfaction level after consuming any goods or services cannot be scaled in numbers. However, these things can be arranged in the order of preference.

    B.Measurement

    Cardinal Utility is measured based on utils.​Ordinal Utility is ranked based on satisfaction
    C.Realistic

    Cardinal Utility is less practical.​Ordinal Utility is more practical and sensible.
    Marginal Utility (MU):
    Marginal utility is the additional utility derived from the consumption of one more unit of the given commodity. It is the utility derived from the last unit of a commodity purchased. As per given example, when 3rd ice-cream is consumed, TU increases from 36 utils to 46 utils. The additional 10 utils from the 3rd ice-cream is the MU.

    In the words of Chapman, “Marginal utility is addition made to total utility by consuming one more unit of a commodity”.
    MU can be calculated as: MUn = TUn – TUn-1

    3: Demand for pricing of productive factors emphasizing on the labor market.
    Demand for a Factor of Production
    The demand for a factor is not a direct demand but it is an indirect or derived demand. The demand for labour, for example, is not demand for labour himself. It is in fact, demand for goods or services which the labour produces. Thus when demand for goods increases, the demand for the factors which produce those goods would also rise. If demand for goods is elastic, the demand for factors would also be elastic. Similarly when demand for goods is inelastic, the factor which produces it will also be inelastic. The demand for any given factor of production also depends upon the availability of other factors which co-operate with this factor in the process of production. Normally the demand for and price of a given factor will be higher if the co-operating factors are available in large. A third rule regarding the demand for a factor is what when more of a factor is employed, its marginal productivity is likely to fall and hence its demand and price are also
    Factor pricing is associated with the prices that an entrepreneur pays to avail the services rendered by the factors of production. For example, an entrepreneur needs to pay wages to labor, rents for availing land, and interests for capital so that he/she can earn maximum profit. These factors of production directly affect the production process of an organization.
    In context of an economy, these four factors of production when combined together produce a net aggregate of products, which is termed as national income. Therefore, it is important to determine the prices of these four factors of production. The theory of factor pricing deals with the determination of the share prices of four factors of production, namely land, labor, capital and enterprise.

  64. Avatar Rich-oparaku chigunyerem chikamnele, 2021/244663 says:

    1 Brefily discuss the elementary theory of utility
    positive, after observing the choices that individuals make, we can draw inferences about their preferences. When we place certain restrictions on those preferences, we can represent them analytically using a utility function—a mathematical formulation that ranks the preferences of the individual in terms of satisfaction different consumption bundles provide. Thus, under the assumptions of utility theory, we can assume that people behaved as if they had a utility function and acted according to it. Therefore, the fact that a person does not know his/her utility function, or even denies its existence, does not contradict the theory. Economists have used experiments to decipher individuals’ utility functions and the behavior that underlies individuals’ utility.
    2 Mention and discuss the different views of utility according to the two schools of thoughts which you have been taught.
    The 2 school of thought include
    *Cardinal school of thought
    *Ordinal school of thought
    CARDINAL SCHOOL OF THOUGHT
    They believed that utility can be measured using numbers ranging from zero to infinity.they are some basic assumption which includes
    1.Utility is measurable
    2.consumers are rational
    3.money income is constant
    ORDINAL SCHOOL OF THOUGHT
    What is an Ordinal Utility?
    ordinal utility states that the satisfaction gets after consuming a good or service cannot be scaled in numbers, whereas, these things can be arranged in the order of preference.They believed that utility can be ranked but not measured
    3 explain the demand and pricing of productive factors emphasizing on labour market
    What is Demand for Labor
    When producing goods and services, businesses require labor and capital as inputs to their production process. The demand for labor is an economics principle derived from the demand for a firm’s output. That is, if demand for a firm’s output increases, the firm will demand more labor, thus hiring more staff. And if demand for the firm’s output of goods and services decreases, in turn, it will require less labor and its demand for labor will fall, and less staff will be retained.The demand for any factor of production, such as labor, physical capital or land is a derived demand because it arises not from the intrinsic utility provided by the factor but because of the value placed on the production it produces by consumers.

  65. Avatar Nwafor Ifeanyi Stanley 2020/245276. Pure and industrial chemistry says:

    (1) Elementary theory of utility
    In economics, utility is the ability of goods and services to satisfy unlimited human want. It can be also viewed as satisfaction , pleasure or fulfillment an individual derive from the consumption of goods and services. Goods and services is desired because of their ability satisfy human want. The concept of utility is used to express consumer’s taste and preferences. The analysis of consumers taste and preferences is a crucial step in determining how a consumer maximize satisfaction in speeding income. The utility of consumers is relatively hard to measure. However it can be determined indirectly with consumer behaviour theories which assure that the consumer will strive to maximise their utility with the resources available this them.

    (2) 1. The cardinals school of thought
    2. The ordinal school of thought
    Explanations:
    a) the cardinal school of thought: the school of thought emphasizes that utility is measurable, this means that the quantity of goods and services that satisfies the need of consumers can be evacuated through the use of figures ranging from zero to infinity
    b) the ordinal school of thought
    The ordinal approach of utility requires that consumers make a scale of preference by choosing between the various commodities that gives one the same level of satisfaction. The approach assumes that utility can be ranked at various levels of consumptions. This approach make the indifference curves ( a curve that indicates a level of satisfaction attained by a consumer from the consumption of commodities).

    (3) 1.Labour productivity
    If labour productivity increases, firms will demand more labour at each wage rate and the firm’s demand for labour itself will increase. This would shift the labour demand curve outwards.

    2.Changes in technology
    Changes in technology can cause the demand for labour to increase and decrease depending on the situation.
    If technological changes make labour more productive relative to the other factors of production (such as capital), firms would demand an increased amount of workers and substitute the other factors of production with new labour.
    3.Changes in demand for a product that labour produces
    If there is an increase in demand for new vehicles, we would likely see an increase in demand for raw materials used in vehicle production. This would lead to an increase in demand for workers, as firms would need people to manufacture the vehicles. This would shift the labour demand curve outwards.

    4.Profitability of firms
    If a firm’s profitability increases, it will be able to hire more workers. This will lead to an increase in the demand for labour. Conversely, a firm that is making no profit and is consistently registering losses will need to layoff workers as it will not be able to pay them anymore. This would subsequently reduce the demand for labour and shift the demand curve of labour inwards.

  66. Avatar Ayogu Mercy Chikodili says:

    Name: Ayogu Mercy Chikodili
    Faculty: Social Science
    Dept: Public administration and local government
    Reg.No: 2021/245854

    Answer
    1. Utility can be defined as the fulfilment or satisfaction a consumer derives from the consumption of a good(s) or service(s).Theory of utility is a concept in economics explains how individuals make decisions based on satisfaction they derive from consumption of goods and services.
    The theory of utility assumes that individuals are rational and seek to maximize their utility and also to make known that individuals have a limited budget and must make choices about how to allocate their resources in order to obtain the most satisfaction.
    The theory of utility has important implications for a variety of economic concepts, including demand theory, consumer behavior and welfare economics.

    2a.Cardinal school of thought
    2b. Ordinal school of though.

    The cardinal school of thought emphasizes that utility is measurable. It argues that after the consumption of a commodity, the consumer can simply evaluate his satisfaction through the use of figures ranging from zero to infinity. One’s satisfaction can be measured in utils.

    The Ordinal school of thought emphasizes that the satisfaction of a consumer from the consumption of goods cannot be expressed numerically but can only be ranked or put to order.This approach argues that utility is completely a psychological element and cannot be expressed in numbers.

    3.Process of business production makes use of capital and labour to create goods and services.A corporation will require more labour market and recruit more workers if there is high demand for it’s output as also.if there is less.demand for it’s output there will be a reduction in employing labour.

  67. Avatar Ayogu Mercy Chikodili says:

    Name: Ayogu Mercy Chikodili
    Faculty: Social Science
    Dept: Public administration and local government
    Reg.No:2021/245854

    Answer
    1. Utility can be defined as the fulfilment or satisfaction a consumer derives from the consumption of a good(s) or service(s).Theory of utility is a concept in economics explains how individuals make decisions based on satisfaction they derive from consumption of goods and services.
    The theory of utility assumes that individuals are rational and seek to maximize their utility and also to make known that individuals have a limited budget and must make choices about how to allocate their resources in order to obtain the most satisfaction.
    The theory of utility has important implications for a variety of economic concepts, including demand theory, consumer behavior and welfare economics.

    2a.Cardinal school of thought
    2b. Ordinal school of though.

    The cardinal school of thought emphasizes that utility is measurable. It argues that after the consumption of a commodity, the consumer can simply evaluate his satisfaction through the use of figures ranging from zero to infinity. One’s satisfaction can be measured in utils.

    The Ordinal school of thought emphasizes that the satisfaction of a consumer from the consumption of goods cannot be expressed numerically but can only be ranked or put to order.This approach argues that utility is completely a psychological element and cannot be expressed in numbers.

    3.Process of business production makes use of capital and labour to create goods and services.A corporation will require more labour market and recruit more workers if there is high demand for it’s output as also.if there is less.demand for it’s output there will be a reduction in employing labour.

  68. Avatar Ayogu Mercy Chikodili says:

    Name: Ayogu Mercy Chikodili
    Faculty: Social Science
    Dept: Public administration and local government
    Reg.No:2021/245854

    Answers
    1. Utility can be defined as the fulfilment or satisfaction a consumer derives from the consumption of a good(s) or service(s).Theory of utility is a concept in economics explains how individuals make decisions based on satisfaction they derive from consumption of goods and services.
    The theory of utility assumes that individuals are rational and seek to maximize their utility and also to make known that individuals have a limited budget and must make choices about how to allocate their resources in order to obtain the most satisfaction.
    The theory of utility has important implications for a variety of economic concepts, including demand theory, consumer behavior and welfare economics.

    2a.Cardinal school of thought
    2b. Ordinal school of though.

    The cardinal school of thought emphasizes that utility is measurable. It argues that after the consumption of a commodity, the consumer can simply evaluate his satisfaction through the use of figures ranging from zero to infinity. One’s satisfaction can be measured in utils.

    The Ordinal school of thought emphasizes that the satisfaction of a consumer from the consumption of goods cannot be expressed numerically but can only be ranked or put to order.This approach argues that utility is completely a psychological element and cannot be expressed in numbers.

    3.Process of business production makes use of capital and labour to create goods and services.A corporation will require more labour market and recruit more workers if there is high demand for it’s output as also.if there is less.demand for it’s output there will be a reduction in employing labour.

  69. Avatar CHIEMERIE RAFAEL .O. {REG NO:11096030HJ} {FACULTY:PHYSICAL SCIENCE} {DEPT:STATISTICS} says:

    1.Utility is defined as the ability of a commodity or service to satisfy consumer wants. Therefore when a consumer derives satisfaction from the consumption of any commodity or service, it can be said that the commodity or service possesses utility. Utility theory is a theory postulated in economics to explain behavior of individuals based on the premise people can consistently order rank their choices depending upon their preferences.

    2.There are basically two schools of thoughts in the analysis of utility and they are as follows:
    (i). Cardinal school of thought
    (ii). Ordinal school of thought

    (i). Cardinal School of Thought: This approach emphasizes that utility is measurable. That is, after consuming a given quantity of a commodity, the consumer can simply evaluate his satisfaction through the use of figures which range from zero to infinity.

    (ii). Ordinal School of thought: This approach of utility analysis requires that the consumer should make a scale of preference and choose between the various commodities that give him the same level of satisfaction.

    3.Demand for labor is a concept that describes the amount of demand for labor that an economy or firm is willing to employ at a given point in time. This demand may not necessarily be in long-run equilibrium. It is determined by the real wage firms are willing to pay for this labor and the number of workers willing to supply labor at that wage.
    The price of a factor is determined by its diminishing general marginal value productivity and the given supply (stock) of the factor in the economy. Factor pricing is by the Austrian theory of imputation. A change in the price of labor or some other factor of production will change the cost of producing any given quantity of the good or service. This change in the cost of production will change the quantity that suppliers are willing to offer at any price. An increase in factor prices should decrease the quantity suppliers will offer at any price, shifting the supply curve to the left. A reduction in factor prices increases the quantity suppliers will offer at any price, shifting the supply curve to the right.
    Consumer goods and producer goods are subjectively determined by how they are used.

  70. Avatar onu faithfulness chinyere says:

    Name; Onu faithfulness chinyere
    Department: economics
    Reg no: 2021/244051
    Email: onfaithfulness@gmail.ccom

    1)Utility: In Economics, utility is a term used to determine the worth or value of a good or service. More especially, utility is the total satisfaction or benefit derived from consuming a good or service.

    2)-Cardinal school of thought.
    -Ordinal school of thought.

    a)Cardinal school of thought states that utility is measurable. That is, after consuming a given quantity of a commodity the consumer can simply evaluate his satisfaction through the use of figures which range from zero to infinity.
    b)Ordinal school of thought States that utility/satisfaction cannot be measured in exact numbers, that is utility is not additive rather it could only be ranked according to preference.

    3) The demand for a factor is not a direct demand but it is an indirect or derived demand. The demand for labour, for example, is not demand for labour himself. It is in fact, demand for goods or services which the labour produces. Thus when demand for goods increases, the demand for the factors which produce those goods would also rise. If demand for goods is elastic, the demand for factors would also be elastic. Similarly when demand for goods is inelastic, the factor which produces it will also be inelastic. The demand for any given factor of production also depends upon the availability of other factors which co-operate with this factor in the process of production.

  71. Avatar Ikwu chidera Shadrach/ PIC/ Reg no:2020/249699 says:

    Que1: briefly discuss the elementary theory of utility
    Elementary theory of utility
    economics, utility is a term used to determine the worth or value of a good or service. More specifically, utility is the total satisfaction or benefit derived from consuming a good or service. or you can also said that utility is thw ability of goods and services to satisfy unlimited human want. It can be also viewed as satisfaction , pleasure or fulfillment an individual derive from the consumption of goods and services. Goods and services is desired because of their ability satisfy human want. The concept of utility is used to express consumer’s taste and preferences. The analysis of consumers taste and preferences is a crucial step in determining how a consumer maximize satisfaction in speeding income. The utility of consumers is relatively hard to measure. However it can be determined indirectly with consumer behaviour theories which assure that the consumer will strive to maximise their utility with the resources available this them.

    Que2: Mention and discuss the different views of utility according to the two schools of thoughts which you have been taught.
    1. The cardinals school of thought
    2. The ordinal school of thought
    Explanations:
    a) the cardinal school of thought: the school of thought emphasizes that utility is measurable, this means that the quantity of goods and services that satisfies the need of consumers can be evacuated through the use of figures ranging from zero to infinity
    b) the ordinal school of thought
    The ordinal approach of utility requires that consumers make a scale of preference by choosing between the various commodities that gives one the same level of satisfaction. The approach assumes that utility can be ranked at various levels of consumptions. This approach make the indifference curves ( a curve that indicates a level of satisfaction attained by a consumer from the consumption of commodities).
    Que3 : Explain the demand for and pricing of productive factors emphasizing on the labour market.
    1.Labour productivity
    If labour productivity increases, firms will demand more labour at each wage rate and the firm’s demand for labour itself will increase. This would shift the labour demand curve outwards.
    2.Changes in technology
    Changes in technology can cause the demand for labour to increase and decrease depending on the situation.
    If technological changes make labour more productive relative to the other factors of production (such as capital), firms would demand an increased amount of workers and substitute the other factors of production with new labour.
    3.Changes in demand for a product that labour produces
    If there is an increase in demand for new vehicles, we would likely see an increase in demand for raw materials used in vehicle production. This would lead to an increase in demand for workers, as firms would need people to manufacture the vehicles. This would shift the labour demand curve outwards.
    4.Profitability of firms
    If a firm’s profitability increases, it will be able to hire more workers. This will lead to an increase in the demand for labour. Conversely, a firm that is making no profit and is consistently registering losses will need to layoff workers as it will not be able to pay them anymore. This would subsequently reduce the demand for labour and shift the demand curve of labour inwards.

  72. Avatar Okolo Jennifer Ifebuche. 2020/244383 says:

    1)Discuss the elementary theory of utility
    Utility theory is based on the fact that satisfaction of which consumer derives from consumption of goods and services can be measured quantitatively.
    It bases its beliefs upon individuals’ preferences. It is a theory postulated in economics to explain behavior of individuals based on the premise people can consistently rank order their choices depending upon their preferences. Each individual will show different preferences, which appear to be hard-wired within each individual. We can thus state that individuals’ preferences are intrinsic. Any theory, which proposes to capture preferences, is, by necessity, abstraction based on certain assumptions. Utility theory is a positive theory that seeks to explain the individuals’ observed behavior and choices.The distinction between normative and positive aspects of a theory is very important in the discipline of economics. Some people argue that economic theories should be normative, which means they should be prescriptive and tell people what to do. Others argue, often successfully, that economic theories are designed to be explanations of observed behavior of agents in the market, hence positive in that sense.
    The utility theory then makes the following assumptions:

    1)Completeness: Individuals can rank order all possible bundles. Rank ordering implies that the theory assumes that, no matter how many combinations of consumption bundles are placed in front of the individual, each individual can always rank them in some order based on preferences. This, in turn, means that individuals can somehow compare any bundle with any other bundle and rank them in order of the satisfaction each bundle provides. So in our example, half a week of food and clothing can be compared to one week of food alone, one week of clothing alone, or any such combination.
    2)Rationality: This is the most important and controversial assumption that underlies all of utility theory. Under the assumption of rationality, individuals’ preferences avoid any kind of circularity; that is, if bundle A is preferred to B, and bundle B is preferred to C, then A is also preferred to C. Under no circumstances will the individual prefer C to A. You can likely see why this assumption is controversial. It assumes that the innate preferences (rank orderings of bundles of goods) are fixed, regardless of the context and time.
    3)More-is-better: Assume an individual prefers consumption of bundle A of goods to bundle B. Then he is offered another bundle, which contains more of everything in bundle A, that is, the new bundle is represented by αA where α = 1. The more-is-better assumption says that individuals prefer αA to A, which in turn is preferred to B, but also A itself. For our example, if one week of food is preferred to one week of clothing, then two weeks of food is a preferred package to one week of food.
    4)Mix-is-better: Suppose an individual is indifferent to the choice between one week of clothing alone and one week of food. Thus, either choice by itself is not preferred over the other. The “mix-is-better” assumption about preferences says that a mix of the two, say half-week of food mixed with half-week of clothing, will be preferred to both stand-alone choices. Thus, a glass of milk mixed with Milo (Nestlè’s drink mix), will be preferred to milk or Milo alone. The mix-is-better assumption is called the “convexity” assumption on preferences, that is, preferences are convex.

    2)Different views of utility according to the two schools of thoughts
    It include the cardinal utility and ordinal utility

    *CARDINAL UTILITY:
    This approach emphasizes that utility is measurable. That is, after consuming a given quantity of a commodity the consumer can simply evaluate his satisfaction through the use of figures which range from zero to infinity.For example, a bunch of 20 bananas can be said to have a cardinal utility of 20, whereas a bunch of 10 only has a utility value of 10.

    *ORDINAL UTILITY:
    Ordinal utility is a relative measure of utility. It describes how one can determine the value of a good or service by comparing it to another. This measurement only captures which good or service is better, not how much better it is. Customers might assign value to goods or services according to ordinal utility. For example, a man asks his friend which one of two local barbershops is better. His friend tells him barber B is better because his skills are more refined. This is a relative measure as one can’t quantitatively measure how much better the one barber cuts hair compared to the other.

    3(Demand for and pricing of productive factors emphasizing on the labour market.

    When producing goods and services, businesses require labor and capital as inputs to their production process. The demand for labor is an economics principle derived from the demand for a firm’s output. That is, if demand for a firm’s output increases, the firm will demand more labor, thus hiring more staff. And if demand for the firm’s output of goods and services decreases, in turn, it will require less labor and its demand for labor will fall, and less staff will be retained.

    Labor market factors drive the supply and demand for labor. Those seeking employment will supply their labor in exchange for wages. Businesses demanding labor from workers will pay for their time and skills.
    Demand for labor is a concept that describes the amount of demand for labor that an economy or firm is willing to employ at a given point in time. This demand may not necessarily be in long-run equilibrium. It is determined by the real wage firms are willing to pay for this labor and the number of workers willing to supply labor at that wage.
    The demand for labour shows how many workers the firms are willing and able to hire at a given time and wage rate.

    Therefore, demand for labour is a concept that illustrates the amount of labour a firm is willing to employ at a particular wage rate. However, the determination of equilibrium in the labour market will also depend on the supply of labour.

  73. Question 1 In, economics, utility is a term used to determine the worth or value of a good or service. More specifically, utility is the total satisfaction or benefit derived from consuming a good or service. Economic theories based on rational choice usually assume that consumers will strive to maximize their utility.

    The economic utility of a good or service is important to understand because it directly influences the demand, and therefore price, of that good or service. In practice, a consumer’s utility is usually impossible to measure or quantify. However, some economists believe that they can indirectly estimate what is the utility of an economic good or service by employing various models.

    KEY TAKEAWAYS
    Utility, in economics, refers to the usefulness or enjoyment a consumer can get from a service or good.
    Although the concept of utility is abstract, it is a useful way to explain how and why consumers make their decisions.
    “Ordinal” utility refers to the concept of one good being more useful or desirable than another.
    “Cardinal” utility is the idea of measuring economic value through imaginary units, known as “utils.” 3.profit-maximizing entity will command additional units of labor according to the marginal decision rule: If the extra output that is produced by hiring one more unit of labor adds more to total revenue than it adds to the total cost, the firm will increase profit by increasing its use of labor. It will continue to hire more and more labor up to the point that the extra revenue generated by the additional labor no longer exceeds the extra cost of the labor. This relationship is also called the marginal product of labor (MPL) in the economics community.

    Other Considerations in Demand for Labor
    According to the law of diminishing marginal returns, by definition, in most sectors, eventually the MPL will decrease. Based on this law: as units of one input are added (with all other inputs held constant) a point will be reached where the resulting additions to output will begin to decrease; that is marginal product will decline.

    What is Demand for Labor
    When producing goods and services, businesses require labor and capital as inputs to their production process. The demand for labor is an economics principle derived from the demand for a firm’s output. That is, if demand for a firm’s output increases, the firm will demand more labor, thus hiring more staff. And if demand for the firm’s output of goods and services decreases, in turn, it will require less labor and its demand for labor will fall, and less staff will be retained.

    Labor market factors drive the supply and demand for labor. Those seeking employment will supply their labor in exchange for wages. Businesses demanding labor from workers will pay for their time and skills.

    BREAKING DOWN Demand for Labor
    Demand for labor is a concept that describes the amount of demand for labor that an economy or firm is willing to employ at a given point in time. This demand may not necessarily be in long-run equilibrium. It is determined by the real wage firms are willing to pay for this labor and the number of workers willing to supply labor at that wage.

    A profit-maximizing entity will command additional units of labor according to the marginal decision rule: If the extra output that is produced by hiring one more unit of labor adds more to total revenue than it adds to the total cost, the firm will increase profit by increasing its use of labor. It will continue to hire more and more labor up to the point that the extra revenue generated by the additional labor no longer exceeds the extra cost of the labor. This relationship is also called the marginal product of labor (MPL) in the economics community.

    Other Considerations in Demand for Labor
    According to the law of diminishing marginal returns, by definition, in most sectors, eventually the MPL will decrease. Based on this law: as units of one input are added (with all other inputs held constant) a point will be reached where the resulting additions to output will begin to decrease; that is marginal product will decline.

    Another consideration is the marginal revenue product of labor (MRPL), which is the change in revenue that results from employing an additional unit of labor, holding all other inputs constant. This can be used to determine the optimal number of workers to employ at a given market wage rate. According to economic theory, profit-maximizing firms will hire workers up to the point where the marginal revenue product is equal to the wage rate because it is not efficient for a firm to pay its workers more than it will earn in revenues from their labor.

    Common Reasons for a Shift in Labor Demand
    Changes in the marginal productivity of labor, such as technological advances brought on by computers
    Changes in the prices of other factors of production, including shifts in the relative prices of labor and capital stock
    Changes in the price of an entity’s output, usually from an entity charging more for their product or service
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    Related Terms
    Marginal Analysis in Business and Microeconomics, With Examples
    Marginal analysis is an examination of the additional benefits of an activity when compared with the additional costs of that activity. Companies use marginal analysis as to help them maximize their potential profits. more
    Marginal Revenue Product (MRP): Definition and How It’s Predicted
    A marginal revenue product (MRP) is the market value of one additional unit of input. It is also known as a marginal value product. more
    Labor Market Explained: Theories and Who Is Included
    The labor market refers to the supply of and demand for labor, in which employees provide the supply and employers provide the demand. more
    Maximum Wage
    A maximum wage is a price ceiling on compensation paid to employees. more
    Circular Flow Model Definition and Calculation
    The circular flow model of economics shows how money moves through an economy in a constant loop from producers to consumers and back again. more
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    Ceteris paribus, a Latin phrase meaning “all else being equal,” helps isolate multiple independent variables affecting a dependent variable. more
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    Sakshi’s area of interest lies in understanding human behavior in the sphere of public goods provision in a society. Additionally, her research sheds light on how coalitions are formed among agents in a society.

    This is a series of articles about Sakshi’s research interests, economics as a discipline, the methods and importance of experimental economics, and Sakshi’s most recent work. Please feel free to contact Sakshi if you are interested to learn more about her work.

    Part 1
    Standard economic theory. Standard economic theory is based on the assumption that consumers are rational and aim to maximize their utility. A rational person will know what is best for them (selfish motive) and will not be influenced by emotions or other external factors while making a decision. However, such human behavior is far from reality. Our actions are strongly influenced by our emotions and often defy the notion of rationality. Adam Smith also did not believe that only selfish motives matter for individuals. In his first book, The Theory of Moral Sentiments, Smith wrote, “How selfish soever man may be supposed, there are evidently some principles in his nature, which interest him in the fortune of others, and render their happiness necessary to him, though he derives nothing from it, except the pleasure of seeing it” (Smith 1759: 3).

    Behavioral economics. To analyze human behavior more innately, economists employ the principles of behavioral economics which unites theories of both psychology and economics to explain irrational choices. Over the years, various models have been developed which explain that individuals’ actions are not only motivated by their own selfish motives but are also driven by their empathy towards others. Such behavior exists not only among agents at a micro level but is also prevalent among agents at the macro level; for example, countries engaging in trade treaties. The deciding factor behind such trade deal lies in fundamental problem of profit maximization which forms the core idea of models in economics. Apart from the profit maximization motive, a country also engages in treaties with another country to uplift the latter’s economy through trade.

  74. Avatar Nnadi Agatha Ngozika reg no 19736885IF matric no 2021/247419 says:

    Answer to question 1
    Theory of utility according to Alfred Marshall states that the utility of a thing to a person at a time is measured by the extent to which it satisfies his wants.utility theory tries to explain the behavior of individual consumers in an economy it also argues that each person given a list of options can rank those options in a precise order of preference each person has different choices which are set not changing over time.utility theory is based on the fact that satisfaction which derived from consumption of goods and services can be measured quantitatively at a particular time.

    Answer to question 2
    a. Cardinal school of thought
    b. Ordinal school of thought
    A. Cardinal school of thought emphasizes that utility is measurable that is after consuming a given quantity of a commodity the consumer can simply evaluate his satisfaction through the use of figures which range from zero to infinity the assumption are utility is measurable,the consumer is rational.
    B. Ordinal school of thought approach to consumers utility states that the utility/satisfaction cannot be measured in exact numbers but can only be ranked or put into order.its also says that utility is completely a psychological element and it cannot be expressed in cardinal numbers it cannot be measured quantitatively.

    Answer to question 3
    The concept of labour market can be viewed as a factor market factor market provides a way for a firms and employers to find the employees they need demand for labour is a consent that illustrates the amount of labour is firm is willing to employ at a particular wage rate.however the determination of equilibrium in the labour market will also depend on the supply of labour equilibrium in the labour market depend on the wage rate firms are willing to pay any amount of labour willing to provide the necessary work remember the factors of production are he resources used to produce goods and services they include land,labour,capital and technology.

  75. Amara Agbasi
    2016/237574
    amara.agbasi.237574@unn.edu.ng
    http://debywrites458740167.wordpress.com/

    1) Utility may be defined as the satisfaction received from consuming a good or service at any particular time. The economic utility of a good or a service is important to understand because it directly influences demand and therefore, the price of that good or service. Utility theory bases its beliefs upon individuals’ preferences. It is a theory postulated in economics to explain behaviour of individuals based on the premise people can consistently rank order their choices depending upon their preferences.

    2). Different views of utility; i) Cardinal and ii) Ordinal

    *Cardinal* : Cardinal utility is the idea of measuring economic value through imaginary units, known as “utils.” Cardinal Utility to Bernoulli and other economists, utility is modelled as a quantifiable or cardinal property of the economic goods that a person consumes.
    To help with this quantitative measurement of satisfaction, economists assume a unit known as a “util” to represent the amount of psychological satisfaction a specific good or service generates for a subset of people in various situations.
    The concept of a measurable util makes it possible to treat economic theory and relationships using mathematical symbols and calculations.
    However, it separates the theory of economic utility from actual observation and experience, since “utils” cannot actually be observed, measured, or compared between different economic goods or between individuals.

    Ordinal: Ordinal Utility; early economists of the Spanish Scholastic tradition of the 1300s and 1400s described the economic value of goods as deriving directly from this property of usefulness and based their theories on prices and monetary exchanges.

    This conception of utility was not quantified, but a qualitative property of an economic good.

    Later economists, particularly those of the Austrian School, developed this idea into an ordinal theory of utility, or the idea that individuals could order or rank the usefulness of various discrete units of economic goods.

    Austrian economist Carl Menger, in a discovery known as the marginal revolution, used this type of framework to help him resolve the diamond-water paradox that had vexed many previous economists. Because the first available units of any economic good will be put to the most highly valued uses, and subsequent units go to lower-valued uses, this ordinal theory of utility is useful for explaining the law of diminishing marginal utility and fundamental economic laws of supply and demand.

    3) Demand for and pricing of productivity factors: Demand for productive factors is a type of derived demand because it arises not from the intrinsic utility provided by the factor but because of the value placed on the product it produces, by consumers.
    Productivity factors;
    Factors that determine productivity levels. The level of productivity in a country, industry, or enterprise is determined by a number of factors. These include the available supplies of labour, land, raw materials, capital facilities, and mechanical aids of various kinds.
    Demand for and consequently pricing for these items follow certain patterns dependent on a number of variables. According to the modem theory, the price of a factor of production is determined at a point where the demand and supply curves of factor intersect each other. This point is known as equilibrium point, where the demand of a factor is equal to its supply.

    What is the demand for labour?
    The concept of labour market can be viewed as a ‘factor market.’ Factor markets provide a way for firms and employers to find the employees they need.

    The demand for labour shows how many workers the firms are willing and able to hire at a given time and wage rate.

    Therefore, demand for labour is a concept that illustrates the amount of labour a firm is willing to employ at a particular wage rate. However, the determination of equilibrium in the labour market will also depend on the supply of labour.

    Equilibrium in the labour market depends on the wage rate firms are willing to pay and the amount of labour willing to provide the necessary work.

  76. Avatar Obayi Ezinne Miracle,2021/247010 says:

    1.utility theory in economics involves the value or worth of a particular good,service or item.
    it suggests that goods,services and items can be ranked according to their usefulness.
    The premise was first theorized by swiss mathematician,Daniel Bernoulli in 18th century
    2.Cardinal utility and ordinal utility_cardinal utility believes in measuring the satisfaction level in utils and the ordinal utility believes that the satisfaction level cannot be evaluated;However,it can be leveled.
    3.In the labour market,the law of demand applies that;a higher salary or wage that is,a higher price In the labour market-leads to a decrease in the quantity of lab our demanded by employers,while a lower salary or wage leads to an increase in the quantity of labour demanded.
    The law of supply functions in labour markets,too:a higher price for labour leads to a higher quantity of labour applied;a lower price leads to a lower quantity supplied.

  77. Avatar onu faithfulness chinyere says:

    The demand for a factor is not a direct demand but it is an indirect or derived demand. The demand for labour, for example, is not demand for labour himself. It is in fact, demand for goods or services which the labour produces. Thus when demand for goods increases, the demand for the factors which produce those goods would also rise. If demand for goods is elastic, the demand for factors would also be elastic. Similarly when demand for goods is inelastic, the factor which produces it will also be inelastic.

  78. Avatar UGWU ONYINYE JOSEPHINE says:

    Number 1:

    Utility is the maximum satisfaction that a consumer derives from consuming a commodity at any particular time. Therefore, consumers react to changes in price and income by allocating their limited resources among competing goods and services with a goal to maximize their satisfaction (utility). It differs from usefulness such that a commodity may be useful to a human being but does not satisfy an individual’s want. Again, it differs from one individual to another and is dependent on time of consumption.

    Number 2:

    There are two schools of thought with different views on utility. They are:
    (a) Cardinal school of thought
    (b) Ordinal school of thought

    The theory of “Cardinal utility” holds that utility is measurable on the basis of the monetary value of the commodity or through the use of figures ranging from zero to infinity.

    There are 5 principal assumptions on the Cardinal school of thought namely:

    (i) The consumer is rational. This means that the consumer will consume those commodities which yields the highest utility and then the second to the highest and so on.

    (ii) Increase in consumption brings about decrease in marginal utility.

    (iii) Utility is additive. That is, utility is derived from the consumption of different commodities which when added up, total utility is realized.

    (iv) Utility is measurable

    (v) Money income of the consumer is constant. Marginal utility of money remains constant even though the quantity of money with the consumer is diminished by the successive purchases made by him.

    On the other hand, “Ordinal utility” school of thought believes that utility cannot be measured. It requires that consumers make a scale of preference by choosing the various commodities that gives one the same level of consumption. This approach makes use of an indifference curve that indicates the levels of satisfaction attained by a consumer from the two commodities.

    The assumptions of Ordinal utility include:

    (I) Total utility is determined by the quality of goods consumed.

    (II) The aim of every consumer is to maximize satisfaction or utility on his income level, the least expenditure, market situation and price of the commodity

    (III) The preference for a product is based on the level of satisfaction expected

    (IV) The marginal rate of substitution states that increase in the consumption of a commodity will lead to/result to decrease in the consumption of another commodity.

    Number 3:

    The three most important factors of production are: labour, land and capital. The demand for a factor of production is not a direct demand but an indirect/derived demand. The demand for labour for example is not a demand for labour itself but in fact, demand for goods and services which the labour produces. Therefore, when demand for goods increases,the demand for the factors which produce those goods would also increase. Also, the demand and price of a factor of production also depends upon the market price of the goods for the production for which the factor is used. If the goods are being sold at high prices, the demand for the factors would also be higher.

    Now, considering labour for instance,the supply of labour depends upon the size and composition of population, it’s occupational and geographical distribution, efficiency of labour,expected income,etc.

    But generally, a higher salary or wage- that is, a higher price in the labour market- leads to a decrease in the quantity of labour demanded by employers, while a lower salary or wage leads to an increase in the quantity of labour demanded. And, a higher price of labour leads to a higher quantity of labour supplied; a lower price leads to a lower quantity supplied. Therefore, when the demand for the goods produced (output) increases, both the output and the profitability increases. As a result, producers demand more labour to ramp up production.

  79. Avatar Okereke Nmasichukwu Revival says:

    Name: Okereke Nmasichukwu Revival
    Department: Public administration and local government.
    Reg no: 10494364AE
    Faculty of social sciences.
    1. Consumer behavior theories, which presuppose that customers will attempt to maximize their utility given the resources at their disposal, can be used to indirectly determine a consumer’s utility, even though it is relatively difficult to do so. When a customer feels satisfied after using a product or service, it can be said that the item has utility. Utility is relative to the customer and depends on time, place, form, and possession.
    Types of utility
    1. Time utility
    2. Form utility
    3. Place utility
    4. Possession utility

    2. The cardinal school of thought;

    According to this school of thought, utility can be measured, which means that the amount of products or services needed to satisfy a consumer’s need may be calculated using numbers between zero and infinity.

    The cardinal school of thinking is based on five premises.
    1. The quality of the products or services affects total utility.
    2. The consumer’s income in money is constant.
    3. The marginal utility is diminishing.
    4. The buyer is sensible.
    5. Utility may be measured.

    The ordinal school of thought;

    According to the ordinal approach to utility, consumers must rank their preferences for diverse goods that provide us with the same amount of satisfaction. This method is predicated on the idea that utility may be graded at different degrees of consumption. An indifference curve—a curve that depicts the degrees of contentment gained by a consumer via the consumption of the commodities—is used in this strategy. A combination of indifference curves is known as an indifference map.

    3. The issue of determining factor prices is satisfactorily resolved by the contemporary theory of pricing of factors of production, sometimes referred to as demand supply theory. According to the idea, the forces of supply and demand are responsible for determining the price of a commodity, just as they are responsible for determining the price of a factor of production.

  80. Avatar Collins Kingsley Chisom Reg no: 2020/244922 says:

    1) In economics, utility theory tries to explain the behavior of individual consumers in an economy. Utility theory argues that each person, given a list of options, can rank those options in a precise order of preference. Each person has different choices which are set, not changing over time.

    For example, imagine consumer A consistently prefers hamburgers to hot dogs, while consumer B always wants a hot dog more than a burger.

    Utility theory relies on a few assumptions about consumers and their behavior: One assumption is that people can rank any number of options in exact order of preference. The options need not be related, and there is no limit to the number of options that the consumer can rank.

    A second assumption is that more total utility is always better. If Bundle A produces 10 units of utility, and Bundle B produces 11 units of utility, the individual will always be better off with Bundle B.

    Utility theory also assumes that a mix of goods is better. If a consumer values two items roughly equally, then a combination of the two offers more expected utility. For example, a consumer who considers hot dogs and hamburgers roughly equal would choose to receive one of each over two hotdogs or two hamburgers.

    Finally, utility theory relies on rational decision making. If a consumer prefers product X to product Y and product Y to product Z, then there is no time that the decision-maker will prefer product Z to product X. In other words, the individual’s preferences are fixed and don’t change.

    Utility theory can explain why consumers behave the way they do and make the purchases they make.

    Expected utility theory is a related theory. It states that consumers make decisions based on the satisfaction they can expect to receive from an action, even when outcomes are uncertain.

    2)a)Ordinary Utility: When using ordinal utility, consumers assign preferences, but not values, to different products.

    For example, someone might say they prefer action films to comedies and comedies to dramas, but they won’t say those action movies are worth 5 points of utility, comedies worth 4, and dramas worth 1.

    Some economists argue that ordinal utility is a more realistic way to look at utility theory. Most consumers don’t have a scoring system that they use to make decisions about what to buy. They simply know their preferences and make decisions based on these feelings.

    2)b) Cardinal Utility: Cardinal utility assumes that people can assign specific values to products and use those values to make a decision.

    For example, a consumer can determine that they receive precisely 20 points of utility from a ticket to a baseball game and 30 points of satisfaction from seats at a hockey game. Thus, the consumer always prefers hockey tickets to baseball tickets, assuming comparable prices.

    Cardinal utility is part of rational choice theory, which argues that people work to achieve utility maximization.

    One way that economists try to assign utility values to products is by looking at the maximum price a consumer will pay for a product. If someone is willing to pay $50 for a hockey ticket, they may decide that they receive 50 units of utility from it. If they would only pay $30 for a baseball ticket, they only get 30 units of satisfaction from seeing a baseball game.

    Cardinal utility is also crucial for the efficient allocation of goods and welfare economics. An economy reaches allocative efficiency when marginal cost (the cost of each additional good) and marginal utility (the value of each additional good) are equal.

    3) Factors affecting the demand for labour
    Many factors that can affect the demand for labour.

    Labour productivity
    If labour productivity increases, firms will demand more labour at each wage rate and the firm’s demand for labour itself will increase. This would shift the labour demand curve outwards.

    Changes in technology
    Changes in technology can cause the demand for labour to increase and decrease depending on the situation.

    If technological changes make labour more productive relative to the other factors of production (such as capital), firms would demand an increased amount of workers and substitute the other factors of production with new labour.

    For example, the production of computer chips will require a certain amount of skilled software and hardware engineers. Thus, the demand for such workers would increase. This would shift the labour demand curve outwards.
    However, with the production and subsequent competition from other firms, we could assume that chip development could become automated. The subsequent result would be a replacement of labour with machines. This would shift the labour demand curve inwards.

    Changes in the number of firms
    Changes in the number of firms operating in the industry can have an immense effect on the overall labour market. This is because demand for a certain factor can be determined by the number of firms currently utilising that factor.

    For example, if the number of restaurants increases in a certain area, the demand for new waiters, waitresses, cooks, and other forms of gastronomy workers will increase. An increase in the number of firms would result in an outward shift in the labour demand curve.
    Changes in demand for a product that labour produces
    If there is an increase in demand for new vehicles, we would likely see an increase in demand for raw materials used in vehicle production. This would lead to an increase in demand for workers, as firms would need people to manufacture the vehicles. This would shift the labour demand curve outwards.

    Profitability of firms
    If a firm’s profitability increases, it will be able to hire more workers. This will lead to an increase in the demand for labour. Conversely, a firm that is making no profit and is consistently registering losses will need to layoff workers as it will not be able to pay them anymore. This would subsequently reduce the demand for labour and shift the demand curve of labour inwards.

  81. Avatar Okoyeazi Chizoba Stephanie 2017/242395 says:

    1. The elementary theory of utility seeks to explain that peoples behavior is based on preference. It suggests that people look for value in everything and use that to make decisions. While humans influence utility, utility influences demand and price of a good or service. Therefore the higher the demand, the higher the price.
    2. Cardinal utility is of the idea that economic welfare can be directly observable and be given value. That is, it can be measurable. The idea is to ensure a rational choice.
    In ordinal utility the consumer ranks choice in terms of preference. It is immeasurable; however, it can be leveled.
    3. The law of demand applies in labour markets this way; a higher salary or wage leads to a decrease in the quantity of labor demanded by employers while a lower salary or wage leads to an increase in the quantity of labor demanded.

  82. Avatar Onah Chisom Evelyn says:

    Onah Chisom Evelyn
    Reg.number: 2021/246809
    Email : chisomonah343@gmail.com

    Question No.(1).
    Utility refers to the ability of goods or services to satisfy unlimited human wants. It can also be viewed as satisfaction, pleasure or fulfillment an individual derives from the the consumption of goods and services . Goods are desired because of their ability to satisfy human wants. The concept of utility is used to express consumer’s taste and preferences. The analysis of consumer tastes and preferences is a crucial step in determining how a consumer maximizes satisfaction in spending income. The Utility of a consumer is relatively hard to measure. However, it can be determined indirectly with Consumer behavior theories, which assume that consumer will strive to maximize their utility with the resources available to them.
    Thus, when a consumer derives satisfaction from consuming goods or services , it can be said that the goods or services consumed or utilized possesses utility, which is relative to the consumer depending on time, place, form , and possession.

    Question No.(2)

    The concept of utility can be analyzed basically by two school of thoughts and they are:

    (a). The Cardinal school of thought: This school of thought emphasizes that utility is measurable.This means that the quantity of goods or services that satisfies the need of a consumer can be evaluated through the use of figures ragging from zero to infinity.

    (2). The ordinal school of thought : This school of thought rejects that utility can be measured in absolute or cardinal terms, and instead, argues that utility can only be ranked or compared in terms of it’s relative value .
    According to the ordinal school of thought, consumers make choices based on their preferences and the relative value they assign to different goods and services. This value is subjective and varies from person to person, and from situation to situation. The ordinal school of thought rejects the concept of cardinal utility, which assumes that utility can be measured in absolute terms, and instead, emphasizes the importance of relative comparisons and trade- offs between different goods and services.

    Question (3).

    Labour in economics refers to the physical and mental effort that is expended by individuals to produce goods and services.

    The demand for labour refers to the amount of labour that employers are willing and able to hire at a given wage rate. The demand of labour is influenced by various factors such as the level of economic activity, the productivity of workers, the availability of capital and technology, and the relative costs of labour and other factors of production. One of the main determinants of the demand of labour is the level of economic activity. When the economy is growing, firms tend increase their production and therefore, they may demand more labour to meet the increase demand for goods and services. On the other hand, during economic downturns or recessions, firms may reduce their production, resulting in lower demand for labour.
    Another important factor that affects demand the demand of labour is the productivity of Workers. When workers are more productive , they can produce more output per unit of labour , and therefore, firm may be willing to hire more workers at a given wage rate.
    In summary the demand for Labour is an important determinant of the wage rate and employment levels in an economy, and it’s influenced by a variety of economic, technological, and social factors

    The pricing of labour refers to the determination of Wage or salary that an employer are willing to pay for a specific type of work or service provided by an employee
    . The pricing of labour is influenced by various by various factors such as, supply and demand for labour , the skills and the experience of the worker, the level of education or training required for the job. And the prevailing market conditions.
    In a competitive labour market, the wage or salary for a particular job is determined by the equilibrium between the supply of labour and the demand of labour. When the supply of labour exceeds the demand, wages tends to fall, and when the demand for labour exceeds the Supply, wages tends to rise.
    Other factors that can affect the pricing of labour include government regulations, labour unions, and minimum wage rate laws.
    In general, the pricing of labour is a complex process that takes into account various economic, social, and political factors that affect the supply and demand for labour.

  83. Answer to eco 101 online quiz and discussion

    Briefly discuss the elementary theory of utility
    Answer
    Utility theory. bases its beliefs upon individuals’ preferences. It is a theory postulated in economics to explain behavior of individuals based on the premise people can consistently rank order their choices depending upon their preferences.

    Mention and discuss the different views of utility according to the two schools of thoughts which you have been taught.
    Answer
    The concept Cardinal utility states that the level of satisfaction a consumer acquires after consuming any goods and services can be measurable and expressed in quantitative numbers.

    The concept of ordinal utility states that the level of satisfaction a consumer obtains after consuming various commodities cannot be measured in numbers but can be arranged in the order of preference.

    Explain the demand for and pricing of productive factors emphasizing on the labour market.
    Answer

    Demand for labour is a concept that describes the amount of demand for labour that an economy or firm is willing to employ at a given point in time. This demand may not necessarily be in long-run equilibrium. It is determined by the real wage firms are willing to pay for this labor and the number of workers willing to supply labor at that wage.

    A profit-maximizing entity will command additional units of labor according to the marginal decision rule: If the extra output that is produced by hiring one more unit of labor adds more to total revenue than it adds to the total cost, the firm will increase profit by increasing its use of labor. It will continue to hire more and more labor up to the point that the extra revenue generated by the additional labor no longer exceeds the extra cost of the labor. This relationship is also called the marginal product of labor (MPL) in the economics community.

    Other Considerations in Demand for Labor
    According to the law of diminishing marginal returns, by definition, in most sectors, eventually the MPL will decrease. Based on this law: as units of one input are added (with all other inputs held constant) a point will be reached where the resulting additions to output will begin to decrease; that is marginal product will decline.

    Another consideration is the marginal revenue product of labor (MRPL), which is the change in revenue that results from employing an additional unit of labor, holding all other inputs constant. This can be used to determine the optimal number of workers to employ at a given market wage rate.

    Name:Ezema chukwuebuka innocent
    Reg num:10772512fb
    Faculty: vocational and technical education
    Department: Business education

  84. Avatar Elemuo Blessing 2020/243962 says:

    Name: Elemuo Blessing
    Matric no: 2020/243962
    1. The elementary theory of utility is based on the fact that satisfactions which consumers derived from consumption of goods and services can be measure quantitative.
    2.i) it is the amount of satisfaction derived from the use of a commodity at a particular time.
    ii) it is the mental state that refers to the amount of satisfaction a consumer estimates to have after the consumption of a certain good or commodity in a particular time.
    III) it is the amount of benefit one gets from the consumption of a particular good at a particular time and season.
    3. The demand for labor is an economics principle derived from the demand for a firm’s output. That is, if demand for a firm’s output increases, the firm will demand more labor but if the demand for a firms output decreases the labour will be less, this hiring less staffs.

  85. Avatar Okechukwu favour sobechukwu reg no:10076042IB/2021/246375 says:

    Pls am in public administration 100L
    Faculty of social science

  86. Avatar Amadi Chima Henry says:

    1. Utility is the maximum satisfaction derived from the consumption if a particular unit of a commodity
    There are four types.
    i. Place utility. This is the satisfaction derived from the consumption of a hood at a particular place
    ii. Time utility. This is the maximum satisfaction derived from the consumption of a good at a particular time
    iii.Form utility: This is the maximum satisfaction derived from the consumption of a good for a particular reason
    iv. Possession utility: this is the satisfaction derived from owning a good
    2. cardinal utility and ordinal utility are the two predominant theories of utility. The cardinal utility believes in measuring the satisfaction level in utils and the ordinal utility believes that the satisfaction level cannot be evaluated; however, it can be levelled.
    3. Demand for labor is a concept that describes the amount of demand for labor that an economy or firm is willing to employ at a given point in time.

  87. Avatar Chime Adaeze Chizuruoke says:

    NAME: CHIME ADAEZE CHIZURUOKE
    REG. NO: 2021/241947
    EMAIL ADDRESS: adaezechime3@gmail.com

    1. In economics, utility is a term used to determine the worth or value of a good or service. More specifically, utility is the total satisfaction or benefit derived from consuming a good or service. Economic theories based on rational choice usually assume that consumers will strive to maximize their utility.

    The economic utility of a good or service is important to understand because it directly influences the demand, and therefore price, of that good or service. In practice, a consumer’s utility is usually impossible to measure or quantify. However, some economists believe that they can indirectly estimate what is the utility of an economic good or service by employing various models.

    2.
    i. Ordinal school of thought
    ii. Cardinal school of thought

    i. This approach emphasizes that utility is measurable. That is, after consuming a given quantity of a commodity the consumer can simply evaluate his satisfaction through the use of figures which range from zero to infinity.
    The neo-classical economist developed the theory of consumption based on the assumption that utility is measurable and can be expressed cardinally. And to do so, they have introduced a hypothetical unit called as “Utils” meaning the units of utility. Here, one Util is equivalent to one rupee and the utility of money remains constant.

    Over the passage of time, it was realized that the absolute measure of utility is not possible, i.e. it was difficult to measure the feeling of satisfaction cardinally (in numbers). Also, it was difficult to quantify the factors that cause a change in the moods of the consumer, their tastes and preferences and their likes and dislikes. Therefore, the utility is not measurable in quantitative terms. But however, it is being used as the starting point in the consumer behavior analysis.

    ii. The ordinal utility approach is a school of thought that believes that utility cannot be measured quantitatively, that is, utility is not additive rather it could only be ranked according to preference.
    The modern economists have discarded the concept of cardinal utility and instead applied ordinal utility approach to study the behavior of the consumers. While the neo-classical economists believed that the utility can be measured and expressed in cardinal numbers, but the modern economists maintain that the utility being the psychological phenomena cannot be measured theoretically, quantitatively and even cardinally.

    The modern economist, Hicks, in particular, have applied the ordinal utility concept to study the consumer behavior. He introduced a tool of analysis called “Indifference Curve” to analyze the consumer behavior. An indifference curve refers to the locus of points each showing different combinations of two substitutes which yield the same level of satisfaction and utility to the consumer.

    3. Labour demand is defined as the amount of labour that employers seek to hire during a given time period at a particular wage rate. The demand for labour as a factor of production is a derived demand, in that labour is demanded not for its own sake but for its contribution to the production of goods and services.
    The demand for labor is an economics principle derived from the demand for a firm’s output. That is, if demand for a firm’s output increases, the firm will demand more labor, thus hiring more staff.

  88. Avatar Dinneya Chidinma Favour says:

    Name: Dinneya Chidinma Favour
    Department: Social science Education
    Unit: Economics Education
    Reg No: 2021/241490
    Theory of Utility
    1. Utility is the total benefits or satisfaction which a person gets from the consumption of goods and services. Goods are desired because of their ability to satisfy human wants.
    The concept of utility is used here to express consumer’s tastes and preferences. The Analysis of consumer tastes and preferences is an important step in determining how a consumer maximizes satisfaction in spending Income.
    2. There are two school of thoughts: The Cardinal and the Ordinal school of thoughts.
    i) The Cardinals: The cardinal school of thought believe that utility can be measured in numbers from Zero to infinity. It deals with one product at a time. They assume the income of consumer remains constant.
    ii) The Ordinals: The Ordinals do not believe that utility can be measured with numbers. A consumer can derive more utility from commodity A than from commodity B. And therefore will spend his income on commodity A rather than B.
    3. Factors of production are used to produce goods and services. There are three most important factors of production which are land, labour and capital.
    The demand for any factor of production is derived demand. A firm cannot make profit unless there is demand for its output. The demand for any factor of production depends on the demand for the output it is used to produce.
    The value of marginal product of a variable input is the additional revenue a firm earns by employing one additional unit of that factor of production, ceteris paribus.
    Labour markets like other goods markets in the economy are governed by the forces of demand and supply. The supply and demand for labour determine the wage or price paid for labour services. When a firm increases the number of workers, the quantity of goods and services produced rises, The wages of the workers is determined by the profits made by the firm.

  89. Avatar Attah Blessing Oluomachi says:

    Attah Blessing Oluomachi
    2020/243514
    Pure and industrial chemistry
    blessingoluomachi664@gmail.com

    1. Utility may be defined as the satisfaction received from consuming a good or service at any particular time. The economic utility of a good and service is important to understand because it directly influences demand and therefore the price of that good and service. Utility can be said to be related to consumer and the variations among the individuals or consumers depend on time, place and form.
    2. Cardinal utility and ordinal utility
    Cardinal utility explains that the satisfaction level after consuming any good or service can be scaled in terms of countable numbers. for example bread gives Obi 60 utils of satisfaction where as burger give him only 40 utils. Cardinal utility is measured based on utils. cardinal utility is less practical and it is also known as utility analysis.
    Ordinal utility explains that the satisfaction level after consuming any good or service cannot be scaled in numbers however, these things can be arranged in order of preference. for example Obi gets more satisfaction from bread as compared to that of a burger. it is rank based on satisfaction. Ordinal utility is more practical and sensible it is also known as indifference curve analysis.

    3.The demand for labor is an economics principle derived from the demand for a firm’s output. That is, if demand for a firm’s output increases, the firm will demand more labor, thus hiring more staff. The demand for any factor of production, such as labor, physical capital or land is a derived demand because it arises not from the intrinsic utility provided by the factor but because of the value placed on the production it produces by consumers.

  90. Avatar Amuh Tobenna says:

    NAME: Amuh Tobenna Anthony
    REG NO: 2020/242720
    DEPT: Nursing Sciences
    1. The elementary theory of utility is a fundamental concept in economics that explains how individuals make choices in order to maximize their satisfaction or well-being. According to this theory, individuals make rational decisions based on their preferences and the constraints they face. Utility refers to the satisfaction or happiness that an individual derives from consuming goods and services. The elementary theory of utility assumes that individuals aim to maximize their total utility by allocating their income in a way that provides them with the greatest possible satisfaction. One of the key assumptions of the elementary theory of utility is that individuals have a limited budget or income, which they must use to purchase goods and services. They also have a set of preferences or tastes, which determine the amount of utility they derive from consuming different goods and services.
    2. The two schools of thought in economics that have different views on the concept of utility are the cardinal school of thought and the ordinal school of thought. Here are the different views of utility according to these two schools of thought: Cardinal school of thought: The cardinal school of thought assumes that utility can be measured and assigned a numerical value. According to this school, utility is a quantifiable measure of satisfaction or happiness that individuals derive from consuming goods and services. The cardinal school of thought views utility as an objective measure that can be compared across individuals and goods. According to this school, individuals can rank different goods and services based on their utility and make choices that maximize their overall utility. The cardinal school of thought assumes that utility is a linear function of the quantity of a particular good or service consumed. This means that the additional utility or satisfaction an individual derives from consuming an additional unit of a good or service is constant. Ordinal school of thought: The ordinal school of thought challenges the assumptions of the cardinal school and argues that utility cannot be measured or assigned a numerical value. According to this school, utility is a subjective measure of satisfaction or happiness that cannot be compared across individuals or goods. The ordinal school of thought views utility as a ranking of preferences rather than a quantifiable measure. According to this school, individuals can rank different goods and services based on their preferences, but they cannot assign a numerical value to these preferences. The ordinal school of thought assumes that utility is an ordinal function of the quantity of a particular good or service consumed. This means that the additional utility or satisfaction an individual derives from consuming an additional unit of a good or service may not be constant and can vary depending on the individual’s preferences and the context. Overall, the different views of utility according to the cardinal and ordinal schools of thought reflect different assumptions about the nature of utility and its relationship with consumption. While the cardinal school assumes that utility is a measurable and linear function of consumption, the ordinal school argues that utility is a subjective and non-measurable ranking of preferences. The demand for and pricing of productive factors, such as labour, play a crucial role in determining the overall economic activity and welfare of a society. Here’s an explanation of the demand for and pricing of labour: Demand for labour:
    3. The demand for labour is the quantity of labour that employers are willing and able to hire at a given wage rate. The demand for labour is derived from the demand for the goods and services that labour helps produce. In other words, firms will hire labour when the marginal product of labour (the additional output produced by an additional unit of labour) exceeds the wage rate. There are several factors that affect the demand for labour, including the level of technology, the price of output, the availability of other factors of production, and the size of the labour force. Changes in any of these factors can shift the demand for labour curve. Pricing of labour: The price of labour is the wage rate that workers receive in exchange for their labour. The wage rate is determined by the interaction of the demand for and supply of labour. When the demand for labour exceeds the supply of labour, the wage rate will increase, and when the supply of labour exceeds the demand for labour, the wage rate will decrease. There are several factors that affect the supply of labour, including population growth, changes in immigration policy, changes in retirement age, and changes in the labour force participation rate. Changes in any of these factors can shift the supply of the labour curve. The pricing of labour is also affected by the degree of competition in the labour market. In a perfectly competitive labour market, employers and workers are price takers, meaning that they have no market power to influence the wage rate. In a non-competitive labour market, such as a monopsony (where there is only one buyer of labour), the employer has market power and can pay a lower wage rate than in a competitive labour market.

  91. Avatar Name:Eze Priscilla Ogechukwu Reg No: 2021/242164 Faculty: Social sciences Department: Public administration and local government says:

    1. Briefly discuss the elementary theory of utility
    Utility theory in economics pertains to the value or worth of a certain good, services or items. It suggests that goods, services and items can be ranked accordly to their usefulness. The premises was initially theorized by Swiss mathematician, Daniel Bernoulli, in the 18th century. Bernoulli founded the idea with regard to the differing values of things with respect to theory, the utility of an items tends to be closely correlated to it’s price. An item such as gold, which is very useful and thus has great utility (combined with it’s scarcity) is very expensive.
    2. Mention and discuss the different views of utility according to the two school of thought which you have been taught
    A. Cardinal school of thought
    B. Ordinal school of thought
    Cardinal school of thought: This approach emphasizes that utility is measurable. That is, after consuming a given quantity of a commodity the consumer can simply evaluate his satisfaction through the use of figures which ranges from zero to infinity.
    Ordinal school of thought: It explains the satisfaction level after consuming any goods and services cannot be scaled in numbers. However, these things can be arranged in order of preference.
    3. Explain the demand for and pricing of productive factors emphasizing on the labour market
    When producing goods and services, business require labour and capital as input to their production process. The demand for labour is an economics principle derived from the demand for a firm’s output. That is, if demand for a firm’s output increases, the firm will demand more labour this hiring more staff. And if demand for the output of good and services decreases in turn, it will require less labor and it’s demand for labour will fall,and less staff will be retained. Labour market factors drive the supply and demand for labour. Those seeking employment will supply their labour in exchange for wages businesses demanding labour from worker will pay for their time and skills.

  92. Avatar IDIKA DIVINE UDUMA says:

    NAME: IDIKA DIVINE UDUMA
    REG NO.: 2021/244496

    1. Utility is a term used to determine the worth or value of a good or service. More specifically, utility is the total satisfaction or benefit derived from consuming a good or service. Economic theories based on rational choice usually assume that consumers will strive to maximize their utility.The economic utility of a good or service is important to understand because it directly influences the demand, and therefore price, of that good or service. In practice, a consumer’s utility is usually impossible to measure or quantify.

    2. Cardinal Utility and Ordinal utility
    Cardinal Utility:The cardinal utility states that the level of satisfaction a consumer acquires after consuming any goods and services can be measurable and expressed in quantitative numbers.
    Ordinal Utility:The concept of ordinal utility states that the level of satisfaction a consumer obtains after consuming various commodities cannot be measured in numbers but can be arranged in the order of preference.

    3.The concept of labour market can be viewed as a ‘factor market.’ Factor markets provide a way for firms and employers to find the employees they need.Therefore, demand for labour is a concept that illustrates the amount of labour a firm is willing to employ at a particular wage rate. However, the determination of equilibrium in the labour market will also depend on the supply of labour. Equilibrium in the labour market depends on the wage rate firms are willing to pay and the amount of labour willing to provide the necessary work.

  93. Answer number 1. In economics untilty is a term used to determine the Worth or value of a good or service more specifically , untilty is the total satisfaction or benefit derived from assume that consumer will strive to maximize their utility.
    The economic untilty of a good or service is important to understand because it directly influences the demand and therefore price of that good or service in practice a measure or quantity however some economics believe that they can indirectly of an economic good or service by employing various model.
    Answer No 2. The Gestalt school of psychology
    Gestalt psyshology was a school of psychology based upen the idea that people experience things as unified wholes Germany and Anstria during the late 19th century in response to the market approach of structuralism.
    Some thinks associated with the Gestalt school of thought include max Werther ,woifgang kokhler, and kurtkoffk.

    Answer number 3. The demand for labour show how many workers the forms are willing and able to hire at a given time and wage rate . therefore demand for labour is a concept that illustrates the amount of labour is a concept that to labour is complete that to employ at a particular wage rate however the determine of equilibrium in the labour market will also depend on the supply of labour.
    Equilibrium in the labour market depends on the wage rate forms are willing to pay and the amount of labour willing to provide the necessary work.

  94. Avatar Adepoju Oluwatosin Eliel says:

    Name:Oluwatosin Adepoju Eliel
    Reg no:11274715EG
    Date:Monday 13th March 2023

    No 1)
    What Is Utility?
    In economics, utility is a term used to determine the worth or value of a good or service. More specifically, utility is the total satisf

    Utility, in economics, refers to the usefulness or enjoyment a consumer can get from a service or good.
    Although the concept of utility is abstract, it is a useful way to explain how and why consumers make their decisions.

    Understanding Utility
    The utility definition in economics is derived from the concept of usefulness. An economic good yields utility to the extent to which it’s useful for satisfying a consumer’s want or need.

    No 2)
    Various schools of thought differ as to how to model economic utility and measure the usefulness of a good or service.

    Utility in economics was first coined by the noted 18th-century Swiss mathematician Daniel Bernoulli.

    Since then, economic theory has progressed, leading to various types of economic utility.

    Ordinal Utility
    Early economists of the Spanish Scholastic tradition of the 1300s and 1400s described the economic value of goods as deriving directly from this property of usefulness and based their theories on prices and monetary exchanges.

    This conception of utility was not quantified, but a qualitative property of an economic good.

    Later economists, particularly those of the Austrian School, developed this idea into an ordinal theory of utility, or the idea that individuals could order or rank the usefulness of various discrete units of economic goods.
    Austrian economist Carl Menger, in a discovery known as the marginal revolution, used this type of framework to help him resolve the diamond-water paradox that had vexed many previous economists. Because the first available units of any economic good will be put to the most highly valued uses, and subsequent units go to lower-valued uses, this ordinal theory of utility is useful for explaining the law of diminishing marginal utility and fundamental economic laws of supply and demand.

    Cardinal Utility
    To Bernoulli and other economists, utility is modeled as a quantifiable or cardinal property of the economic goods that a person consumes.

    To help with this quantitative measurement of satisfaction, economists assume a unit known as a “util” to represent the amount of psychological satisfaction a specific good or service generates for a subset of people in various situations.

    The concept of a measurable util makes it possible to treat economic theory and relationships using mathematical symbols and calculations.

    No 3)
    What is Demand for Labor
    When producing goods and services, businesses require labor and capital as inputs to their production process. The demand for labor is an economics principle derived from the demand for a firm’s output. That is, if demand for a firm’s output increases, the firm will demand more labor, thus hiring more staff. And if demand for the firm’s output of goods and services decreases, in turn, it will require less labor and its demand for labor will fall, and less staff will be retained.
    Labor market factors drive the supply and demand for labor. Those seeking employment will supply their labor in exchange for wages. Businesses demanding labor from workers will pay for their time and skills.

    Further Emphasis on the Demand for Labor.

    Demand for labor is a concept that describes the amount of demand for labor that an economy or firm is willing to employ at a given point in time. This demand may not necessarily be in long-run equilibrium. It is determined by the real wage firms are willing to pay for this labor and the number of workers willing to supply labor at that wage.
    profit-maximizing entity will command additional units of labor according to the marginal decision rule: If the extra output that is produced by hiring one more unit of labor adds more to total revenue than it adds to the total cost, the firm will increase profit by increasing its use of labor. It will continue to hire more and more labor up to the point that the extra revenue generated by the additional labor no longer exceeds the extra cost of the labor. This relationship is also called the marginal product of labor (MPL) in the economics community.

    What causes a Shift in Labor Demand.

    a)Changes in the marginal productivity of labor, such as technological advances brought on by computers.

    b)Changes in the prices of other factors of production, including shifts in the relative prices of labor and capital stock.

    c)Changes in the price of an entity’s output, usually from an entity charging more for their product or service.

  95. Avatar Anagbogu chidalu cynthia says:

    Faculty: Social science
    Department: Public Administration and Local Government
    Name: Anagbogu chidalu Cynthia
    Reg no: 10277353HA
    1* Elementary Theory Of Utility
    In economics, the idea of usefulness is used for the utility definition. The amount to which an economic good or product benefits a consumer’s demand or need determines it’s utility.
    Daniel Bernoulli was a prominent 18th century Swiss mathematician who defined the term “utility”.
    to utility theory, people make purchase decisions based on the degree of satisfaction they g
    Utility is a term used to determine the worth or value of a good or service.
    Utility is the total satisfaction or benefit derived from consuming a good or service. Economic theories based on rational choice usually assume that consumers will strive to reach their maximum utility.
    The first important use of the expected utility theory was that of John Von Neumann and Oskar Morgenstern, who used the assumption of expected utility maximization in their formulation of game theory.

    2* Theory Of Consumer Behavior
    The theory of consumer behaviour is also known as the theory of household behavior.it is primarily concerned with how the consumer or household tries to satisfy his or her wants by dividing his or her limited amount of income between the various commodities that give him equal amount of satisfaction.
    1) Total utility
    2) Average utility
    3) Marginal utility
    In Ordinal School Of Thought
    The ordinalist school asserts that utility cannot be measured in quantitative terms. Rather, the consumer can compare the utility accruing from different commodities (as a combination of them) and rank them in accordance with the satisfaction each commodity (or combination of commodities) gives him.
    Thus, the cardinal approach to the measurement of utility believes that utility derived from the consumption of a commodity can be expressed in quantitative terms. The ordinalist approach rejects this and states that the consumer at best can rank the various commodities (or combination of them) in accordance with the satisfaction that he expects from their consumption.

    3* What is demand for labour?
    When producing goods and services businesses require Labour and capital as well as input to their production process. The demand for labour is an economic principle derived from the demand for a firm’s output. That is if demand for a firm’s output increases the firm will demand more labour thus, hiring more staff. And if the demand for the firm’s output of goods and services decreases in turn it will require less labour and it’s demand for labour will fall and less stuff will be retained.

    Labour market factors drive the supply and demand for labour. Those seeking employment will supply their labour in exchange for wages.
    Businesses demanding labour from workers we’ll pay for their time and skills.
    How Price And Productivity Influence The Demand For Labour
    If labour productivity increases firms will demand more labour at each wage rate and the firm’s demand for labour itself will increase. This will shift the labour demand curve outwards.
    If productivity per unit of Labour input (or per worker) increases while wages remain constant this will increase labour demand a further extension of production will increase profits.
    Growth in labour productivity is the key to higher living standards as a country can sustain real wage increases without losing competitiveness only if labour productivity grows. Labour productivity relates output to the number of workers employed. It does not measure the specific contribution of labor alone.
    Improved workers, improved management practices can increase productivity.

  96. Avatar Mozie Chiamaka Marycynthia Reg no2020/242566 says:

    Mozie Chiamaka Marycynthia
    2020/242566
    Pure and industrial chemistry.

    1. Utility is the amount of satisfaction desired from the use of a commodity at a particular time. It is the amount of benefit one gets from the consumption of a particular good at a particular time. The utility of any product is not fixed, it relates to something at a particular time. Therefore utility is used to express consumer’s tastes and preferences and how the consumers desires satisfaction.

    2a. According to the cardinal school of thought:
    i. Utility is measurable.
    ii. Consumer is rational
    iii. There is diminishing marginal utility.
    iv. Total utility depends on the quantity consumed.
    v. Money income of the consumer is held constant.
    Explain.
    i. Utility is measured: After consuming a given quantity of a commodity, the consumer can evaluate his satisfaction through the use of figures which ranges from zero to infinity.
    iii. There is diminishing marginal utility: If a consumer continues consuming successive equal movements in the quantity of a commodity, then the increase in total utility resulting will be smaller i.e satisfaction per additional unit will start falling.
    iv. Total utility depends on the quantity consumed: Utility increases as the quantity consumed increases but not at equal rate because the consumers has a point where he won’t be able to consume more of that product.
    2b. According to the ordinal school of thought
    i. Utility can be measured – Level of satisfaction after consuming any good is not measured with figures rather they can be arranged in the order of preference.
    ii. Consistency – A consumer’s choice is consistent i.e if there are two goods A and B, and he chooses commodity A, he cannot choose commodity B at the same time.
    iii. Rationality of Consumer – It assumes the rational consumer whose objective to maximize the utility under the budget constraint.
    iv. Diminishing marginal rate of substitution – The marginal rate of substitution between two goods always diminishes so that a consumer can attain the same level of satisfation.

    3) The firm’s demand for labour depends on the marginal revenue generated from each unit of output and the productivity of each labour unit. Marginal revenue will increase as price of output increases , firms will demand more labour when outputs’ price gets higher. Marginal productivity increase will increase demand for labour . Investment in Capita such as Education, Training etc will increase productivity.

  97. Avatar Onovo Agatha Amarachi. Reg no:2021/246593 department:public administration and local government says:

    (1) Utility theory bases its beliefs upon individuals’ preferences. It is a theory postulated in economics to explain behavior of individuals based on the premise people can consistently rank order their choices depending upon their preferences. Each individual will show different preferences, which appear to be hard-wired within each individual. We can thus state that individuals’ preferences are intrinsic. Any theory, which proposes to capture preferences, is, by necessity, abstraction based on certain assumptions. Utility theory is a positive theory that seeks to explain the individuals’ observed behavior and choices.

    (2) Cardinal Utility

    Ordinal Utility
    Definition

    It explains that the satisfaction level after consuming any goods or services can be scaled in terms of countable numbers. It explains that the satisfaction level after consuming any goods or services cannot be scaled in numbers. However, these things can be arranged in the order of preference.
    Example

    Pizza gives Sam 60 utils of satisfaction, whereas burger gives him only 40 utils. Sam gets more satisfaction from a pizza as compared to that of a burger.
    Measurement

    Utility is measured based on utils. Utility is ranked based on satisfaction.

    (3)When producing goods and services, businesses require labor and capital as inputs to their production process. The demand for labor is an economics principle derived from the demand for a firm’s output. That is, if demand for a firm’s output increases, the firm will demand more labor, thus hiring more staff. And if demand for the firm’s output of goods and services decreases, in turn, it will require less labor and its demand for labor will fall, and less staff will be retained.

  98. Avatar Onah Miracle Chidimma says:

    3). A profit-maximizing entity will command additional units of labor according to the marginal decision rule: If the extra output that is produced by hiring one more unit of labor adds more to total revenue than it adds to the total cost, the firm will increase profit by increasing its use of labor. It will continue to hire more and more labor up to the point that the extra revenue generated by the additional labor no longer exceeds the extra cost of the labor. This relationship is also called the marginal product of labor (MPL) in the economics community.

  99. Avatar Amah Maureen Amarachukwu....... 2020/247219. Science Laboratory Technology says:

    1. Utility is based on the fact that satisfaction which consumers derived from consumption of goods and services can be measured quantitatively. utility is the amount of satisfaction that a consumer derives from the consumption of goods and services at a particular time. Since we have assumed that utility can be measured, we should be able to determine such facts; what is commodity; or what are marginal utilities derived from consuming several units of a commodity? As we said earlier this is premised on the assumption that consumption can be measured.
    Total utility is the total amount of satisfaction a consumer derives from the consumption of several quantities of commodity.
    Marginal utility is the satisfaction a consumer receive from consuming one additional unit of a good or service.
    2. Cardinal Utility and Ordinal Utility
    Cardinal Utility believes in measuring the satisfaction level in utils and the satisfaction level after consuming any goods or services can be scaled in terms of countable numbers.
    Ordinal Utility believes that the satisfaction level cannot be evaluated; however, it can be levelled.
    3. Demand for labor is a concept that describe the amount of demand for labor that an economy or firm is willing to employ at a given point in time.
    When producing good and service, business require labor and capital as input to their production process. The demand for labor is an economics principle drived from the demand if a firm’s output increases, the firm will demand more labor, thus hiring more staff. And if demand for the firm’s output of good and service decreases, in turn, it will require less Iabor and it’s demand for labor will fall, and less staff will be retained.

  100. Avatar Onah Miracle Chidimma says:

    2). Cardinal utility
    b). Ordinal utility
    cardinal utility and ordinal utility are the two predominant theories of utility. The cardinal utility believes in measuring the satisfaction level in utils and the ordinal utility believes that the satisfaction level cannot be evaluated; however, it can be levelled.

  101. Avatar Gbadebo Victor Ojomo. 2021/246208 says:

    (1.) Briefly discuss the elementary theory of utility.

    The elementary theory of utility in economics pertains to the value or worth of a certain good, service, or item. It suggests that goods, services, and items can be ranked according to their usefulness. The premise was initially theorized by Swiss mathematician, Daniel Bernoulli, in the 18th century. Bernoulli founded the idea with regard to the differing values of things. With respect to theory, the utility of an item tends to be closely correlated to its price. An item such as gold, which is very useful and thus has great utility (combined with its scarcity), is very expensive. Total utility is closely tied to the bare concept of utility. Total utility points to the aggregate amount of usefulness and fruition there is to be gained from the use of a specific good, service, or other item. Furthermore, the abstract measurement of utility is another key concept of the theory. Although it’s hard to calculate the exact utility of something, economists use abstract measurements to capture the usefulness of things.

    (2.) Mention and discuss the different views of utility according to the two schools of thoughts which you have been taught.

    Cardinal and Ordinal utility.

    Cardinal utility is a quantitative approach to measuring utility. It presents the utility of something as a fixed number – it’s an exact measure of utility. An individual can rank goods or services according to their cardinal utility by comparing the utility numbers derived from the goods or services. For example, a bunch of 20 bananas can be said to have a cardinal utility of 20, whereas a bunch of 10 only has a utility value of 10.

    Ordinal utility is a relative measure of utility. It describes how one can determine the value of a good or service by comparing it to another. This measurement only captures which good or service is better, not how much better it is. Customers might assign value to goods or services according to ordinal utility. For example, a man asks his friend which one of two local barbershops is better. His friend tells him barber B is better because his skills are more refined. This is a relative measure as one can’t quantitatively measure how much better the one barber cuts hair compared to the other.

    (3.) Explain the demand for and pricing of productive factors emphasizing on the labor market.

    The demand for and pricing of productive factors is a derived demand. This is because the demand for a factor of production (input) is derived from the demand of output. If the demand of output is high, then the demand for input or factor of production would also be high and vice versa.
    According to the macroeconomic theory, the fact that wage growth lags productivity growth indicates that the supply of labor has outpaced demand. When that happens, there is downward pressure on wages, as workers compete for a scarce number of jobs and employers have their pick of the labor force.
    Conversely, if demand outpaces supply, there is upward pressure on wages, as workers have more bargaining power and are more likely to be able to switch to a higher paying job, while employers must compete for scarce labor.

  102. Avatar Onah Miracle Chidimma says:

    1). In economics, utility theory tries to explain the behavior of individual consumers in an economy. Utility theory argues that each person, given a list of options, can rank those options in a precise order of preference. Each person has different choices which are set, not changing over time.

  103. Avatar Onah Miracle Chidimma says:

    Onah Miracle Chidimma
    2020/249311
    Dimmamiracle@gmail.com

  104. Avatar Eke Goodness Chisom says:

    Name: Eke Goodness Chisom
    Department: Public Administration and Local Government (100 Level)
    Reg. No: 2021/245859

    Answers
    Utility is the ability to satisfy (eliminate) human needs of goods and services. Utility is basically a psychological concept. The use of goods to meet the needs, on theanother hand, reduces the severity of the need while also reducing the benefits provided from each unit. The severity of the commodity determines the utility, not the kind of need. In this case, the benefit will decrease as the amount of a good that people have increases because as the amount of that good increases, the severity of the need decreases.

    In economics, utility theory tries to explain the behavior of individual consumers in an economy. Utility theory argues that each person, given a list of options, can rank those options in a precise order of preference. Each person has different choices which are set, not changing over time
    The utility maximization assumption is based on Bentham (1789). In the original use of Bentham, utility is expressed as the experience of pain and pleasure and emphasizes what to do besides what we will do.

    The expected utility theory is also widely used in modeling preferences related to risky alternatives in many areas where economic, financial, and uncertain decision processes are examined. However, this theory is far from unproblematic.

    Utility in economics was first coined by the noted 18th-century Swiss mathematician Daniel Bernoulli. Since then, economic theory has progressed, leading to various types of economic utility.

    Also, utility is subjective. People consume the goods because they are beneficial. The utility of a good varies from individual to individual. For example, playing football very well for a football player may not be useful for someone who does not know how to play football. Even the benefit or utility of the same goods and services for the same person may be different at different times.

    Theories of Utility
    1. Ordinal utility: Which cannot be measured, Early economists of the Spanish Scholastic tradition of the 1300s and 1400s described the economic value of goods as deriving directly from this property of usefulness and based their theories on prices and monetary exchanges.
    This conception of utility was not quantified, but a qualitative property of an economic good. Later economists, particularly those of the Austrian School, developed this idea into an ordinal theory of utility, or the idea that individuals could order or rank the usefulness of various discrete units of economic goods.

    Austrian economist Carl Menger, in a discovery known as the marginal revolution, used this type of framework to help him resolve the diamond-water paradox that had vexed many previous economists. Because the first available units of any economic good will be put to the most highly valued uses, and subsequent units go to lower-valued uses, this ordinal theory of utility is useful for explaining the law of diminishing marginal utility and fundamental economic laws of supply and demand

    2. Cardinal utility: Which can be measured. Economists (cardinal beneficiaries) who argue that the benefit can be measured accept that every good or group of goods can be measured in a certain utility unit.

    To Bernoulli and other economists, utility is modeled as a quantifiable or cardinal property of the economic goods that a person consumes.
    To help with this quantitative measurement of satisfaction, economists assume a unit known as a “util” to represent the amount of psychological satisfaction a specific good or service generates for a subset of people in various situations.

    The concept of a measurable util makes it possible to treat economic theory and relationships using mathematical symbols and calculations.

    However, it separates the theory of economic utility from actual observation and experience, since “utils” cannot actually be observed, measured, or compared between different economic goods or between individuals.

    If, for example, an individual judges that a piece of pizza will yield 10 utils and that a bowl of pasta will yield 12 utils, that individual will know that eating the pasta will be more satisfying. For the producers of pizza and pasta, knowing that the average bowl of pasta will yield two additional utils will help them price pasta slightly higher than pizza.

    Additionally, utils can decrease as the number of products or services consumed increases. The first slice of pizza may yield 10 utils, but as more pizza is consumed, the utils may decrease as people become full. This process will help consumers understand how to maximize their utility by allocating their money between multiple types of goods and services as well as help companies understand how to structure tiered pricing.

    Cardinal utility theory is based on three basic concepts, namely, marginal utility, total utility, and diminishing marginal utility.

    Others theories of Utility includes;
    – Expected utility: The expected utility is the result obtained by multiplying the potential utility, which is the result of a decision under uncertainty, by the probability of the event taking place.
    – Expected utility theory: All individuals who follow a rational utility optimization process calculate the probability of occurrence for each event in the case of uncertainty by Bayesian methods. The expected utility is maximized by multiplying the expected probabilities from the events with the calculated

    No 2: Different views of utility according to two schools of thought
    1. Ordinal
    2. Cardinal

    Ordinal Utility
    Ordinal Utility is propounded by the modern economists, J.R. Hicks, and R.G.D. Allen, which states that it is not possible for consumers to express the satisfaction derived from a commodity in absolute or numerical terms. Modern Economists hold that utility being a psychological phenomenon, cannot be measured quantitatively, theoretically and conceptually. However, a person can introspectively express whether a good or service provides more, less or equal satisfaction when compared to one another.

    In this way, the measurement of utility is ordinal, i.e. qualitative, based on the ranking of preferences for commodities. For example: Suppose a person prefers tea to coffee and coffee to milk. Hence, he or she can tell subjectively, his/her preferences, i.e. tea > coffee > milk.

    Cardinal Utility
    The notion of Cardinal utility was formulated by Neo-classical economists, who hold that utility is measurable and can be expressed quantitatively or cardinally, i.e. 1, 2, 3, and so on. The traditional economists developed the theory of consumption based on cardinal measurement of utility, for which they coined the term ‘Util‘ expands to Units of utility. It is assumed that one util is equal to one unit of money, and there is the constant utility of money.

    Further, it has been realised with the passage of time that the cardinal measurement of utility is not possible, thus less realistic. There are many difficulties in measuring utility numerically, as the utility derived by the consumer from a good or service depends on a number of factors such as mood, interest, taste, preferences and much more.
    No 3: Explain the demand for and pricing of
    productive factors emphasing on the labour market

    The concept of labour market can be viewed as a ‘factor market.’ Factor markets provide a way for firms and employers to find the employees they need.

    The law of demand applies in labor markets this way: A higher salary or wage that is, a higher price in the labor market leads to a decrease in the quantity of labor demanded by employers, while a lower salary or wage leads to an increase in the quantity of labor demanded.

    Therefore, demand for labour is a concept that illustrates the amount of labour a firm is willing to employ at a particular wage rate. However, the determination of equilibrium in the labour market will also depend on the supply of labour.

    Equilibrium in the labour market depends on the wage rate firms are willing to pay and the amount of labour willing to provide the necessary work.

    Demand for labour curve
    As we said, the demand for labour shows how many workers an employer is willing and able to hire at a given wage rate at any given time. The labour demand curve shows an inverse relationship between the employment level and the wage rate.

    What is the demand for labour
    The concept of labour market can be viewed as a ‘factor market.’ Factor markets provide a way for firms and employers to find the employees they need. The demand for labour shows how many workers the firms are willing and able to hire at a given time and wage rate.

    Therefore, demand for labour is a concept that illustrates the amount of labour a firm is willing to employ at a particular wage rate. However, the determination of equilibrium in the labour market will also depend on the supply of labour.

    Equilibrium in the labour market depends on the wage rate firms are willing to pay and the amount of labour willing to provide the necessary work.

    Factors affecting the demand for labour
    Many factors that can affect the demand for labour.
    1. Labour productivity
    If labour productivity increases, firms will demand more labour at each wage rate and the firm’s demand for labour itself will increase. This would shift the labour demand curve outwards.

    2. Changes in technology
    Changes in technology can cause the demand for labour to increase and decrease depending on the situation.

    If technological changes make labour more productive relative to the other factors of production (such as capital), firms would demand an increased amount of workers and substitute the other factors of production with new labour. However, with the production and subsequent competition from other firms, we could assume that chip development could become automated. The subsequent result would be a replacement of labour with machines. This would shift the labour demand curve inwards

    3. Changes in the number of firms
    Changes in the number of firms operating in the industry can have an immense effect on the overall labour market. This is because demand for a certain factor can be determined by the number of firms currently utilising that factor.

    4. increase in the number of firms would result in an outward shift in the labour demand curve.
    Changes in demand for a product that labour produces.

    If there is an increase in demand for new vehicles, we would likely see an increase in demand for raw materials used in vehicle production. This would lead to an increase in demand for workers, as firms would need people to manufacture the vehicles. This would shift the labour demand curve outwards.

    5. Profitability of firms
    If a firm’s profitability increases, it will be able to hire more workers. This will lead to an increase in the demand for labour. Conversely, a firm that is making no profit and is consistently registering losses will need to layoff workers as it will not be able to pay them anymore. This would subsequently reduce the demand for labour and shift the demand curve of labour inwards.

  105. Avatar ALBI DABIRI RODNEY says:

    NAME: ALBI RODNEY DABIRI
    REG NO: 2021/243543
    DEPARTMENT: NURSING SCIENCE
    Briefly discuss the elementary theory of utility.
    2) Mention and discuss the different views of utility according to the two schools of thoughts which you have been taught.
    3) Explain the demand for and pricing of productive factors emphasizing on the labour market.
    1. THEORY OF UTILITY: In economics, utility theory tries to explain the behavior of individual consumers in an economy. Utility theory argues that each person, given a list of options, can rank those options in a precise order of preference. Each person has different choices which are set, not changing over time.
    For example, imagine consumer A consistently prefers hamburgers to hot dogs, while consumer B always wants a hot dog more than a burger.
    Utility theory relies on a few assumptions about consumers and their behavior: One assumption is that people can rank any number of options in exact order of preference. The options need not be related, and there is no limit to the number of options that the consumer can rank.
    A second assumption is that more total utility is always better. If Bundle A produces 10 units of utility, and Bundle B produces 11 units of utility, the individual will always be better off with Bundle B.
    Utility theory also assumes that a mix of goods is better. If a consumer values two items roughly equally, then a combination of the two offers more expected utility. For example, a consumer who considers hot dogs and hamburgers roughly equal would choose to receive one of each over two hotdogs or two hamburgers.
    2. DIFFERENT VIEWS OF UTILITY
    a. Ordinal Utility
    b. Cardinal Utility
    What is an Ordinal Utility? Utility states that the satisfaction a consumer gets after consuming a good or service cannot be scaled in numbers, whereas, these things can be arranged in the order of preference. Two English economists, John Hicks and R.J. Allen 1930 argued that the consumer behavior theory should be introduced based on Ordinal Utility. According to the ordinal approach, utility is a psychological phenomenon like happiness, satisfaction, and welfare. The ordinal theory is highly subjective and differs across individuals. Therefore, it cannot be measured in quantifiable terms.The function that represents utility of a product according to its preference, but does not provide any numerical figure, is known as an Ordinal Utility. In simpler words, this theory affirms that it is relevant to ask which item is better as compared to others instead of how good is that product. For example, a BMW car is favored more than a Toyota car, but it cannot be determined by what percentage.Apart from showing a mathematical function, a consumer’s preference can be demonstrated graphically through indifference curves. It becomes easy when there are two types of commodities x and y. Each indifference curve provides coordinates (x,y) when (x1, y1) and (x2, y2) lie on the same curve line and (x1, y1) ~ (x2, y2).This is an example of an indifference curve map where the preference of goods are shown but not their quantity. Each of the curves represents a combination of two services or goods. The consumers are equally satisfied with the goods and services. The more distant a curve is from the origin, the higher its utility level.The utility according to this approach can be measured in relative terms such as less than and greater than. This approach states that consumer behavior can be explained in terms of preferences or rankings. For example, a consumer may prefer soft drinks over hard drinks. In such a case, the soft drink would have 1st rank, while 2nd rank would be given to hard drinksTherefore, as per the Ordinal Utility approach, a consumer observes different pairs of two commodities which would provide him/her the same level of satisfaction. Among these pairs, he/she may prefer one commodity over the other based on how he/she ranks them in order of utility. This implies that utility can be ranked qualitatively rather than quantitatively.
    What is Cardinal Utility? According to classical economists, utility is a quantitative concept that can be measured in terms of a number. Hence they introduced the concept of measuring utility using a cardinal approach. According to this concept, the utility can be expressed similarly to how weight and height are expressed. However, the economists lacked a precise unit for utility. Hence, they derived a psychological unit termed as ‘Util’. Util is not regarded as a standard unit because it varies from person to person, place to place, and time to time. For example, if a person assigns 30 utils to a pizza and 20 utils to a chowmein, we can understand that the pizza has double the capacity to satisfy what humans want.As util is not a standard unit for measuring utility, many economists, including Alfred Marshall suggested measurement of utility in terms of money that consumers are willing to pay for a commodity. If each rupee is equal to 1 util, a pizza worth Rs 30 has 30 utils and a chow min worth Rs 20 has 20 utils. Hence, the consumer who consumes burgers will yield utility of 30 utils and those who consume chow min will yield utility of 20 utils.The supply and demand of a product decide its price. Moreover, a person’s desire for a product depends on these three factors:Price of the itemIncome of a personThe cost of other related items
    Application of Cardinal Utility Following are the different applications of Cardinal Utility:
    Welfare Economics: Under this structure, the production of goods and providing services are judged by the personal wealth of an individual. This means that it presents a way to comprehend the “greatest good to the greatest number of persons”. For example, by this act, a person’s utility decreases by 75 utils and increases two other persons each by 50 utils. However, the overall increase is 25 utils which is a positive offering.
    Marginalism: In cardinal theory, a product’s marginal utility sign is alike for all the mathematical forms, but its magnitude is not the same. This applies to the second derivative of a differentiable utility as well.

    3. Labor resources include the work done by the waiter who brings your food at a local restaurant as well as the engineer who designed the bus that transports you to school. It includes an artist’s creation of a painting as well as the work of the pilot flying the airplane overhead. If you have ever been paid for a job, you have contributed labor resources to the production of goods or services.
    When producing goods and services, businesses require labor and capital as inputs to their production process. The demand for labor is an economics principle derived from the demand for a firm’s output. That is, if demand for a firm’s output increases, the firm will demand more labor, thus hiring more staff. And if demand for the firm’s output of goods and services decreases, in turn, it will require less labor and its demand for labor will fall, and less staff will be retained.
    Labor market factors drive the supply and demand for labor. Those seeking employment will supply their labor in exchange for wages. Businesses demanding labor from workers will pay for their time and skills.Demand for labor is a concept that describes the amount of demand for labor that an economy or firm is willing to employ at a given point in time. This demand may not necessarily be in long-run equilibrium. It is determined by the real wage firms are willing to pay for this labor and the number of workers willing to supply labor at that wage.A profit-maximizing entity will command additional units of labor according to the marginal decision rule: If the extra output that is produced by hiring one more unit of labor adds more to total revenue than it adds to the total cost, the firm will increase profit by increasing its use of labor. It will continue to hire more and more labor up to the point that the extra revenue generated by the additional labor no longer exceeds the extra cost of the labor. This relationship is also called the marginal product of labor (MPL) in the economics community.

  106. Avatar OGBODO CHIEMERIE DELIGHT ,DEPT: PUBLIC ADMINISTRATION AND LOCAL GOVERNMENT,REG NO;2021/244220 faculty: social sciences, level: 100l says:

    1 Utility theory is based on the fact that satisfaction which consumers derived from consumption of goods and services can be measure quantitative, utility theory bases its beliefs upon individuals’preferences. It Is a postulated in economics to explain behaviour of individuals based on the premise people can consistently rank order their choices depending upon their preference. The economic utility of good and service is important to understand because it directly influences demand and therefore the price of that good or service.
    2 Cardinal school of thought: this approach emphasises that utility us measurable. That is, after consuming a given quantity of commodity the consumer can simply evaluate his satisfaction through the use of figures range from zero to infinity.
    ii Ordinal school of thought: this states that utility cannot be measured in exact numbers but can be ranked or put into order. This approach argues that utility is completely a psychological element and it cannot be expressed in Cardinal numbers.
    3 If labour productivity increases, firms will demand more labour at each wage rate and the firm’s demand for labour itself will increase. The demand for labour is an economic principle derived from the demand for a firm’s output. That is if demand for a firm’s output increases, the firm will demand more labour, thus hiring more staff.

  107. Avatar Okorafor Sophie Ogonnaya...2021/241957 says:

    1. UTILITY is there amount all satisfaction or benefits derived from the conception of a particular commodity at a given time. It can also be defined as the quantity of satisfaction a consumer estimates to have after the consumption of a goods at a particular time.
    Utility is a term used to determine the value, worth or usefulness of a commodity and the ability of that commodity to satisfy human wants. Utility can be categorised into different forms like time utility which is satisfaction derived from consuming a commodity at a particular time, place utility is the process of making gold readily available to consumers to increase satisfaction and form utility which is the transformation of goods from one form to another in order to derive satisfaction.

    2. CARDINAL AND ORDINAL UTILITY APPROACH.
    a. Cardinal utility approach states that utility can be measured using cardinal numbers that is quantitative numbers ranging from zero to infinity. Cardinal utility is the idea that satisfaction can be directly observable, expressed and giving a value. Utility here is measure in utils. Example, people may be able to express the utility that consumption gift for a certain products, like rice may have 100 utils, while beans can have 52 utils for a person.
    b. Ordinal utility approach state that to satisfaction a consumer get after the consumption of a commodity cannot be measured in numbers but it can be ranked or arranged in order of preference. It is also known as indifference curve analysis and it uses rankings or ratings to express satisfaction. Comparisons of commodities is made by assigning ranks such as first, second, third etc. Here, utility of a product is represented according to preference not numerical figures. For example rice is favoured more than beans.

    3. Demand for productive factor is the willingness and ability of producers to purchase factors of production at any given time. the demand for factor of production is a derived demand. Demand for labour is one of the examples of demand for productive factor. it is defined as the amount of labour a farm is willing and able to hire or employee at a given time and for a particular wage rate. The demand for labour shows an inverse relationship between employment level and which rate. Factors affecting demand for labour include labour productivity changes in technology profitability of the firm etc.
    Pricing of labour or labour cost is the total wages, benefits paid to and for all labourers or workers by their employers. It is the salaries or wages received by labour at the end of the working period.

  108. Avatar Mamah paschaline oluchukwu. Reg no. ; 2020/242023. Department; Pure and industrial chemistry. says:

    1.)Utility refers to the ability of goods and services to satisfy unlimited human wants. It can also be viewed as satisfaction, pleasure, or fulfilment an individual derives from the consumption of goods and services.
    2.) The cardinal school of thought and ordinal school of thought.
    Cardinal school of thought; This school of thought emphasizes that utility is measurable. This means that the quantity of goods and services that satisfies the need of a consumer can be evaluated through the use of figures ranging from zero to infinity.
    Ordinal school of thought; This requires that consumers make a scale of preference by choosing between the various commodities that gives one the same level of satisfaction.
    This approach assumes that utility can be ranked at various levels of consumption.

    3.)The demand for labour market;The demand for labour for example, is not demand for labour itself but infact, demand for goods and services which the labour produces.The demand and supply for labour determine the wage or price paid for labour services.
    Like all prices, the price of labour(the wage ) depends on supply and demand.

  109. Avatar Ifebuche Okafor says:

    Name: Okafor Ifebuche Joan
    Course: Nursing science
    Reg. No: 2021/244665
    Email address: ifebucheokafor4@gmail.com

    1) The want satisfying power of a commodity is called utility. It is a quality possessed by a commodity or service to satisfy human wants. Utility can also be defined as value-in-use of a commodity because the satisfaction which we get from the consumption of a commodity is its value-in-use.In economics, utility theory tries to explain the behavior of individual consumers in an economy. Utility theory argues that each person, given a list of options, can rank those options in a precise order of preference. Each person has different choices which are set, not changing over time.
    2) In Cardinal utility: It explains that the satisfaction level after consuming any goods or services can be scaled in terms of countable numbers.Utility is measured based on utils.It is less practical. This theory was applied by Prof. Marshall.
    In Ordinal utility: It explains that the satisfaction level after consuming any goods or services cannot be scaled in numbers. However, these things can be arranged in the order of preference.Utility is ranked based on satisfaction.It is more practical and sensible. This theory was applied by Prof. J R Hicks.
    3) Changes in labour productivity shows whether output is increasing or decreasing per worker and is often used in wage settlements to compensate workers for productivity improvements. Growth in labour productivity is the key to higher living standards as a country can sustain real wage increases without losing competitiveness, only if labour productivity grows.
    Labour productivity relates output to the number of workers employed. It does not measure the specific contribution of labour alone. Rather, it reflects the joint effects of many factors, including new technology, capital investment, health and skills of workers and the use of more efficient management and production practices.

  110. Avatar Emerhe Lucky Ejirooghene says:

    Name: Emerhe Lucky Ejirooghene
    Reg no: 2021/246367
    Email: ejirochosen@gmail.com

    1. THE ELEMENTARY THEORY OF UTILITY IS:
    It is based on the fact that the satisfaction consumer derives from a product can be measured quantitatively. It is a theory postulated in economics to explain the behaviour of individuals based on the premise people can consistently rank order their choices depending on their preferences. Each individual will show different preferences, which appear to be hard-wired within each individual. We can thus state that individuals’ preferences are intrinsic. Any theory, which proposes to capture preferences, is, by necessity, an abstraction based on certain assumptions. Utility theory is a positive theory that seeks to explain the individuals’ observed behaviour and choices.

    2a. CARDINAL SCHOOL OF THOUGHT: This method emphasizes that utility is measurable. That is, after consuming a given quantity of a product the consumer can analyse his satisfaction through the use of figures which range from zero to infinity.
    Assumptions: This implies that marginal utilities decline or diminish with each additional unit of consumption, known as the Law of Diminishing marginal utility. But, the marginal utility of money continues frequently throughout when the individual is spending money on a good or service.
    Cardinal Utility is the concept that economic welfare can be directly observable and be given a value. For example, people may be equipped to communicate the utility that consumption gives for certain goods. For example, if a Jeep car gives 5,000 units of utility, a BMW car would give 8,000 units.

    2b. THE ORDINAL SCHOOL OF THOUGHT:
    -)The ordinal method to consumer utility states that utility/satisfaction cannot be measured in specific numbers but can only be ranked or put into order. This approach argues that utility/satisfaction is completely a psychological element and it cannot be expressed in cardinal numbers.
    Assumption: This analysis assumes the rational consumers whose objective is to maximize the utility under the budget constraint. The utility is measured ordinally by comparing the satisfaction whether higher or lower by consuming different bundles of goods.
    In this way, the measurement of utility is ordinal, i.e. qualitative, based on the ranking of preferences for commodities. For example: Suppose a person prefers tea to coffee and coffee to milk. Hence, he or she can tell subjectively, his/her preferences, i.e. tea > coffee > milk.

    3. The demand for and pricing of productive factors emphasizing the labour market:
    The demand for labour shows how many workers the firms are willing and able to hire at a given time and wage rate. The concept of the labour market can be understood as a factor market. Factor markets provide a way for firms and employers to find the employees they need. Labour factors drive the supply and demand for labour. Those seeking employment will supply their labour in exchange for wages. Businesses demanding labour from workers will pay for their time and skills. Therefore, demand for labour is a concept that illustrates the amount of labour a firm is willing to employ at a particular wage rate. However, the determination of equilibrium in the labour market will also depend on the supply of labour. Equilibrium in the labour market depends on the wage rate firms are willing to pay and the amount of labour willing to provide the necessary work.

  111. Avatar Emerhe Lucky Ejirooghene says:

    Name: Emerhe Lucky Ejirooghene
    Reg no: 2021/246367
    Email: ejirochosen@gmail.com

    1. THE ELEMENTARY THEORY OF UTILITY IS:
    It is based on the fact that the satisfaction consumer derives from a product can be measured quantitatively. It is a theory postulated in economics to explain the behaviour of individuals based on the premise people can consistently rank order their choices depending on their preferences. Each individual will show different preferences, which appear to be hard-wired within each individual. We can thus state that individuals’ preferences are intrinsic. Any theory, which proposes to capture preferences, is, by necessity, an abstraction based on certain assumptions. Utility theory is a positive theory that seeks to explain the individuals’ observed behaviour and choices.

    2a. CARDINAL SCHOOL OF THOUGHT: This method emphasizes that utility is measurable. That is, after consuming a given quantity of a product the consumer can analyse his satisfaction through the use of figures which range from zero to infinity.
    Assumptions: This implies that marginal utilities decline or diminish with each additional unit of consumption, known as the Law of Diminishing marginal utility. But, the marginal utility of money continues frequently throughout when the individual is spending money on a good or service.
    Cardinal Utility is the concept that economic welfare can be directly observable and be given a value. For example, people may be equipped to communicate the utility that consumption gives for certain goods. For example, if a Jeep car gives 5,000 units of utility, a BMW car would give 8,000 units.

    2b. THE ORDINAL SCHOOL OF THOUGHT:
    -)The ordinal method to consumer utility states that utility/satisfaction cannot be measured in specific numbers but can only be ranked or put into order. This approach argues that utility/satisfaction is completely a psychological element and it cannot be expressed in cardinal numbers.
    Assumption: This analysis assumes the rational consumers whose objective is to maximize the utility under the budget constraint. The utility is measured ordinally by comparing the satisfaction whether higher or lower by consuming different bundles of goods.
    In this way, the measurement of utility is ordinal, i.e. qualitative, based on the ranking of preferences for commodities. For example: Suppose a person prefers tea to coffee and coffee to milk. Hence, he or she can tell subjectively, his/her preferences, i.e. tea > coffee > milk.

    3. The demand for and pricing of productive factors emphasizing the labour market:
    The demand for labour shows how many workers the firms are willing and able to hire at a given time and wage rate. The concept of the labour market can be understood as a factor market. Factor markets provide a way for firms and employers to find the employees they need. Labour factors drive the supply and demand for labour. Those seeking employment will supply their labour in exchange for wages. Businesses demanding labour from workers will pay for their time and skills. Therefore, demand for labour is a concept that illustrates the amount of labour a firm is willing to employ at a particular wage rate. However, the determination of equilibrium in the labour market will also depend on the supply of labour. Equilibrium in the labour market depends on the wage rate firms are willing to pay and the amount of labour willing to provide the necessary work.

  112. Avatar ANIESEDO DUMEBI JESSICA 2020/241155 SCIENCE LABORATORY TECHNOLOGY says:

    1. What Is Utility?
    In economics, utility is a term used to determine the worth or value of a good or service. More specifically, utility is the total satisfaction or benefit derived from consuming a good or service. Economic theories based on rational choice usually assume that consumers will strive to maximize their utility.

    The economic utility of a good or service is important to understand because it directly influences the demand, and therefore price, of that good or service. In practice, a consumer’s utility is usually impossible to measure or quantify. However, some economists believe that they can indirectly estimate what is the utility of an economic good or service by employing various models.
    Understanding Utility
    The utility definition in economics is derived from the concept of usefulness. An economic good yields utility to the extent to which it’s useful for satisfying a consumer’s want or need.
    1
    Various schools of thought differ as to how to model economic utility and measure the usefulness of a good or service. Utility in economics was first coined by the noted 18th-century Swiss mathematician Daniel Bernoulli.
    2
    Since then, economic theory has progressed, leading to various types of economic utility.

    Ordinal Utility
    Early economists of the Spanish Scholastic tradition of the 1300s and 1400s described the economic value of goods as deriving directly from this property of usefulness and based their theories on prices and monetary exchanges.
    This conception of utility was not quantified, but a qualitative property of an economic good.
    3
    Later economists, particularly those of the Austrian School, developed this idea into an ordinal theory of utility, or the idea that individuals could order or rank the usefulness of various discrete units of economic goods.
    4

    Austrian economist Carl Menger, in a discovery known as the marginal revolution, used this type of framework to help him resolve the diamond-water paradox that had vexed many previous economists. Because the first available units of any economic good will be put to the most highly valued uses, and subsequent units go to lower-valued uses, this ordinal theory of utility is useful for explaining the law of diminishing marginal utility and fundamental economic laws of supply and demand.
    5

    Cardinal Utility
    To Bernoulli and other economists, utility is modeled as a quantifiable or cardinal property of the economic goods that a person consumes.
    2
    To help with this quantitative measurement of satisfaction, economists assume a unit known as a “util” to represent the amount of psychological satisfaction a specific good or service generates for a subset of people in various situations.
    5
    The concept of a measurable util makes it possible to treat economic theory and relationships using mathematical symbols and calculations.

    However, it separates the theory of economic utility from actual observation and experience, since “utils” cannot actually be observed, measured, or compared between different economic goods or between individuals.
    6

    If, for example, an individual judges that a piece of pizza will yield 10 utils and that a bowl of pasta will yield 12 utils, that individual will know that eating the pasta will be more satisfying. For the producers of pizza and pasta, knowing that the average bowl of pasta will yield two additional utils will help them price pasta slightly higher than pizza.

    Additionally, utils can decrease as the number of products or services consumed increases. The first slice of pizza may yield 10 utils, but as more pizza is consumed, the utils may decrease as people become full. This process will help consumers understand how to maximize their utility by allocating their money between multiple types of goods and services as well as help companies understand how to structure tiered pricing.

    Economic utility can be estimated by observing a consumer’s choice between similar products. However, measuring utility becomes challenging as more variables or differences are present between the choices.

    2. In Plato’s Republics and in his other writings we see a development of idealism. According to him, every object of our experience is nothing but shadow. That is saying that it is not in a pure state of reality. Whatever we perceive is merely a poor copy of the reality that exists in another world which he designates as the world of Forms or Ideas. Thus Plato’s Idealism talks of two worlds: the world of shadows and the world of Ideas. The latter is replete with absolute perfection, real, unchangeable, universal and eternal realities whereas the former is the world of imperfect copies of things residing in the real world of ideas. The implication is that every material thing must have its true copy in the world of ideas. Idealist would say that even the pen you are having now is only an imperfect copy or a shadow of the ideal pen in the world Ideas. Though there may ne various strands of idealism, the basic tenet is the emphasis that existence is explained in terms of the mind and its function.

    Other Views on Idealism

    Since Plato, there have been many understanding of idealism. Descartes is one such Idealist. He holds that the most important element in the nature of knowledge is mind or spirit. This idea is beautifully expressed in his popular philosophical dictum. Corgito ergo sum (I think, therefore I exist). This idealistic statement has so much implication for Descartes who doubted the reality of anything having material nature and would only accept as reality the thought that he is thinking. Bishop George Berkeley also advanced the school of idealism in modern times by his esse est percipi (to be is to be perceived) . What is real is that which can be perceived, what cannot be perceived is unreal.

    To put it more correctly again, the central thesis of idealism is that true knowledge can be derived from reason alone since it is only the faculty of reason that can grasp or extract from material things their spiritual forms or essences. The faculty of the senses provides the mind with imperfect, unstable and changing knowledge of physical objects.

    Educational Implication of Idealism

    1. For Plato, Education simply means stimulation of the mind to recall that which it already knows before its being in the world. He taught that the soul I born with innate knowledge which it lost with contact with the material world (human body). Thus the concept of school and education is to create an enabling environment where students are encouraged to recall and embrace the concept of the Good and the universal truth that already exist in their soul which has been forgotten. An idealistic educational system would concern itself with ideas of things. The goal of education should be connected with the lifetime work of searching for true ideas. It should be to cultivate the human mind.

    2. Idealism prefers the world of the spiritual to the world of material things. Thus, in education, effort is made to create an enabling environment for the orientation of the youngster towards spiritual things or toward ideas.

    3. As a result of the basic tenet of Idealism, educational curriculum is made of humanities (languages, literature, philosophy, religion, etc) and social studies. These subject are idea-based. Thus they are to awaken in students the basic ideas of the universe. They help in the cultivation of the mind. Not that idealist do not consider physical training, vocational training and sciences, they consider them but only in the subordinate manner.

    Realism

    Realism as a philosophy is traceable to Aristotle, the famous student of Plato, (384-322 BC). He is acclaimed to be the father of realism just as Plato is believed to be the propounder of idealistic tradition in Western Philosophy.

    The contention of Realism is that objects of our sensual perceptions are real in themselves, whether the mind perceives it or know it or not. The basic tenet of realism is that reality and knowledge of things can be acquires independent of the mind that perceives them. In other words reality is extramentasl and not intramental, i.e. it exists outside the mind and not within the mind as ideas. The implication of the realist epistemology is that everyday experience is true knowledge. “Our dependable knowledge if external reality is possible. Physical reality asserts, as fact, that the actual sticks, stones and trees of the universe exist whether or not there is a human mind to perceive them”. Ozmon & Craver (1995). “The realist prioritizes a worl of ‘things; as opposed to a world of idea Jacobsen, (1842-1910).

    Some of the proponents of Realism are Baruch Spinoza (1632-1677), John Locke (1632-1704), American Philosopher-Psychologist, William James, (1842-1910), etc.

    Realism is antithetical to Idealism. It upholds that the view that matter is real and not shadows or “copies” of the real which exist in the spiritual/immaterial world. In its proposition, realism says that our concrete materials world is capable of furnishing human mind with reality. And these realities are independent of the perceiving mind. It is in opposition to \berkeleyan theory of esse est percipi (to be is to be perceived) which virtually equares existence with perception such that an object cannot be said to exist if there is no body or some ‘mind’ to perceive it. Agudosi (2033:58)

    Realism is like an umbrella term that covers many other philosophies which can be said to be sub-schools of realism. These sub-schools believe that reality is perceptible, concrete and outside the mind. Thus we have the following ‘Realisms’.

    1. Aristotelian Realism

    2. Scholastic Realism

    3. Natural or Scientific Realism

    Aristotelian Realism: This is also known as classical realism because it is the premier realism of western culture. As the name suggests, it is an intellectual product of Aristotle. He was a student of Plato, but disagreed with his master on what is the nature of human knowledge. Do we actually perceive things the way they are, or do we perceive them as they appear to us? That is to ask if the concrete data of our experiences are real or imaginary? That is why he wrote on almost all the fields of human knowledge: poetry, rhetoric, ethics, politics, meteorology, embryology, physics, mathematics, metaphysics, anatomy, physiology, logic, dreams and so forth.

    “Aristotle viewed reality as a uniting of both actuality (form) and potentiality (matter). Both must be united in order for something to be real or to truly exist”, and that is the principle of his Aristotelian Hylemorphism. All things are made of matter. What makes one matter different from another? It is the form (morphe), the differentiating or the individuating principle of matter. It is evident that every object of our daily experience is made up of matter and form and it is this co-existence of matter and form in reality that Aristotle designates as Hylemorphism. It is then the form that make something what it is, as against or different from what is not. When both matter and form are not present, knowledge is not possible.

    Aristotle described the relationship between form and matter with the Four Causes:

    Material cause – the matter from which something is made;
    Formal cause – the design that shapes the materials object;
    Efficient cause – the agent that produces the object; and
    Final cause – the direction toward which the object is tending.
    Through these different forms, Aristotle demonstrated that matter was constantly in a process of change. He believed that God, the Ultimate Reality held all creation together. Organization was very important in Aristotle’s philosophy. He maintained that human beings as rational creatures are fulfilling their purpose when they think, and thinking are their highest characteristic.

    Furthermore, realism unlike idealism does not talk about dual world of matter and form in order to explain human knowledge. For realists, there is only “a world” of reality.

    Educational Implications of Realism

    1. Religious realists do not limit knowledge to the phenomenal world alone, but hold that knowledge acquired through the senses is real; rational knowledge does not form the entire domain of reality. There is a being responsible for their existence. The cosmos are real, and they point to the existence of a higher Being. Furthermore, the study of God reveals that man always depends on God for his perfection and self-fulfillment. Therefore, education must recognize and incorporate this fact. Okafor (1981) writes that this is the basic educational task of scholastics. “The two domains (the natural and the supernatural) are complimentary elements in man’s effort towards the attainment of his ultimate self-fulfillment and complete actualization”.

    2. The scientific realism sees the environment and the training of the senses for perception as against empty memorization of abstract things. It is a total rejection of the classical method whereby the child is made to memorizing knowledge by rote system. The child is given enormous freedom to discover knowledge and is given freedom to think through situations rather than accepting authority as source of human knowledge. One major criterion for knowledge here is the inductive method of observation, experimentation, formulation of hypothesis and laws which eventually form what is known today as scientific knowledge. This implies that nay knowledge that cannot be verified inductively is committed to the flames, and more so are dogmas. Education is better dome God-free.

    Appreciable is the influence of Scientific knowledge to life. It has actually advanced the welfare of man in the society. But care must be taken not to reduce life to what can be tested, evaluated and decided in the laboratory. Life is always larger than scientific logic.

    3. When producing goods and services, businesses require labor and capital as inputs to their production process. The demand for labor is an economics principle derived from the demand for a firm’s output. That is, if demand for a firm’s output increases, the firm will demand more labor, thus hiring more staff. And if demand for the firm’s output of goods and services decreases, in turn, it will require less labor and its demand for labor will fall, and less staff will be retained.

    Labor market factors drive the supply and demand for labor. Those seeking employment will supply their labor in exchange for wages. Businesses demanding labor from workers will pay for their time and skills.

    BREAKING DOWN Demand for Labor
    Demand for labor is a concept that describes the amount of demand for labor that an economy or firm is willing to employ at a given point in time. This demand may not necessarily be in long-run equilibrium. It is determined by the real wage firms are willing to pay for this labor and the number of workers willing to supply labor at that wage

  113. Avatar Ifezue Michael Ikenna says:

    Name: Ifezue Michael Ikenna
    Reg No:
    Faculty: Vocational and Technical.    Education.
    Department: Business Education

    NO.1
      Theory of Utility
    In Economics, the theory of utility tends to explain the behaviors and actions of individuals and consumers towards a commodity or commodities in an economy within a given time. Theory of Utility argues that each person given a list of commodity, will have to arrange the commodities in preferences.
    Utility denotes the choices of consumers,  the behaviors of a consumer towards a particular goods,expressing the value of the commodity. 
    For example   a consumer  loves to consume a particular  commodity always.  Like an individual always preferring to consumea particularproduct always, showing he values the product.  Denoting the useful of the product he is consuming

      NO.2
      The concept of utility can be analysed basically by two school of thought and they are
    a: The ordinal school of thought
    b: The cardinal school of thought

    The cardinal school of thought emphasis that utility is measurable. This means that the quantity of goods or services that satisfies the need of a consumer can be evaluated through the use of figures ranging from zero to infinity.

    The  ordinal utility required that consumers make a scale of preference by choosing between the various commodities that gives one the same level of satisfaction.

      NO.3
      This explains that when producing goods and services,  capital and labour are major and a necessity to a production process. The demand for labour is an economic principle that also determines the effectiveness of a firm in satisfying the demands.
    The demand for labour is constant to demand of the society.  Thus ,if there is high demand of a product,  the firm tends to employ laborer  for efficiency of the firm, and the vice versa. Hence Demand for labour and demand for products varies each other.

    Thank you.

  114. Avatar Ifezue Michael Ikenna says:

    Name: Ifezue Michael Ikenna
    Reg No: 11316713FF
    Faculty: Vocational and Technical.    Education.
    Department: Business Education

    NO.1
      Theory of Utility
    In Economics, the theory of utility tends to explain the behaviors and actions of individuals and consumers towards a commodity or commodities in an economy within a given time. Theory of Utility argues that each person given a list of commodity, will have to arrange the commodities in preferences.
    Utility denotes the choices of consumers,  the behaviors of a consumer towards a particular goods,expressing the value of the commodity. 
    For example   a consumer  loves to consume a particular  commodity always.  Like an individual always preferring to consumea particularproduct always, showing he values the product.  Denoting the useful of the product he is consuming

      NO.2
      The concept of utility can be analysed basically by two school of thought and they are
    a: The ordinal school of thought
    b: The cardinal school of thought

    The cardinal school of thought emphasis that utility is measurable. This means that the quantity of goods or services that satisfies the need of a consumer can be evaluated through the use of figures ranging from zero to infinity.

    The  ordinal utility required that consumers make a scale of preference by choosing between the various commodities that gives one the same level of satisfaction.

      NO.3
      This explains that when producing goods and services,  capital and labour are major and a necessity to a production process. The demand for labour is an economic principle that also determines the effectiveness of a firm in satisfying the demands.
    The demand for labour is constant to demand of the society.  Thus ,if there is high demand of a product,  the firm tends to employ laborer  for efficiency of the firm, and the vice versa. Hence Demand for labour and demand for products varies each other.

    Thank you.

  115. Avatar Okoye Assumpta Afoma says:

    1 The theory of utility bases its beliefs upon individuals’ preferences. It is a theory postulated in economics to explain behavior of individuals based on the premise people can consistently rank order their choices depending upon their preferences.

    2. (a) cardinal utility
    (b)ordinal utility
    cardinal utility and ordinal utility are the two predominant theories of utility. The cardinal utility believes in measuring the satisfaction level of the consumer after consumption or usage of the product while the ordinal utility believes that the satisfaction level cannot be evaluated; however, it can be levelled

    3 If commodity prices fall, or if pests or poor weather conditions diminish the quality of the produce, the marginal value product of labor shifts inward, reducing labor demand. These factors vary widely across regions as well as across seasons. Imagine, for example, that there is a major freeze in Florida destroying citrus crops and driving the marginal value product of labor in a Florida orange grove to zero. However, due to the anticipated shortage of fresh oranges, the price of California oranges increases, and the marginal value product of citrus labor in California shifts outward. Farmworkers in Florida cannot easily move to California to fill seasonal jobs.

  116. Avatar Ekwueme Adaeze Blessing says:

    Answers
    1) utility is defined as the satisfaction level a consumer receives from buying and consuming and using a particular product or services.
    Utility theory is based on the fact that satisfaction which consumers derived from consumption of goods and services can be measured quantitative.
    Alfred Marshall theory states that utility of a thing to a person at a time is measured by the extent to which it satisfies his want.bases is beliefs upon individuals preference.it is a theory postulated in economics to explain behavior of individual based on the premises people can consistently rank order their choices depending upon their preferences.

    Jeremy bentham’s (1748-1832 )moral philosophy centered on two assumptions , the goodness or badness of experience is quantifiable and the lord quantities obtained can be added across people.

    Types of utility are; possession utility,time utility,place utility and form utility.

    2) Cardinal school of thought and ordinal utility
    The cardinal utility believes in measuring the satisfaction level in Utils .
    Ordinal utility believes that the satisfaction level cannot be measured or evaluated , however, it can be leveled.
    Differences;
    Cardinal can be measured based on utils while ordinal is rank based on satisfaction.
    Cardinal is less practical while ordinal is more practical and sensible.
    Cardinal the theory was applied by prof. Marshall (afred) while ordinal was applied by prof. J.R Hicks.
    Cardinal other name is utility analysis while ordinal is indifferent curve analysis.

    3) When producing goods and services, businesses requires labour and capital as inputs to their production process. Labour market factors drives the supply and demand for labour in exchange for wages businesses demanding their labour from workers will pay for their time and skills.

  117. Avatar Obidiegwu Favour Nmesoma says:

    Name: Obidiegwu Favour Nmesoma,Reg.No:11062005bd,Email: obidiegwufavour98@gmail.com, Department: public Administration and Local Government, Faculty: Social Sciences,100l.
    1: Utility theory in economics pertains to the value or worth of a certain good, service or item.it suggests that goods, services and item can be ranked according to their usefulness.the premise was initially theorized by swiss mathematician, Daniel Bernoulli,in the 18th century. Bernoulli founded the idea with regard to the different value of things..the utility of an item tends to be closely correlated to it’s price.An item such as gold,which is very useful and this has great utility (combined with it’s scarcity)is very expensive.Total utility is closely tied to the bare concept of utility.Total utility points to the aggregate amount of usefulness and fruition there is to be gained from the use of a specific good, service or item. The Abstract measurement of utility is another key concept of the theory.

    2
    A) Cardinal Utility:this is a quantitative approach to measuring utility.it presents the utility of something as a fixed number – it’s an exact measure of utility.for example,a bunch of bananas can be said to have a Cardinal Utility of 20, whereas a bunch of 10 only has a utility value of 10.
    B)Ordinal Utility:Ordinal Utility is a relative measure of utility.it describes how one can determine the value of a good or service by comparing it to another.This measurement only captures which goods or services is better not how much better it is.customers might assign value to goods or services according to Ordinal Utility.for example,a man asks his friend which one of two local barbershop is better.His friend tells him barber B is better because his skills are more refined.
    However,a Cardinal Utility and Ordinal Utility are the two predominant theories of utility.the Cardinal utility believes in measuring the satisfaction levels in Utils and the Ordinal Utility believes that the satisfaction level cannot be evaluated; however,it can be levelled.

    3)Demand for labour is a concept that illustrates the amount of labour a firm is willing to employ at a particular wage rate . Equilibrium in the labour market depends on the wage rate firms are willing to pay and the amount of labour willing to produce the necessary work.
    Factors affecting the demand for labour are:
    1) Labour productivity:if labour productivity increases,firms will demand more labour at each wage rate and the firms demand for labour itself will increase.this would shift the labour demand curve outwards.

    2)Changes in Technology:Changes in technology can cause the demand for labour to increase and decrease depending on the situation.for example,the production of computer chips will require a certain amount of skilled software and hardware engineers,thus the demand for such workers would increase.this would shift the labour demand curve outwards. However, with the production and subsequent competition from other firms,we could assume that chip development could become automated,which would result to replacement of labour with machines.this would shift the labour demand curve inwards.

    3)Changes in the number of firms:Changes in the number of firms operating in the industry can have an immense effect on the overall labour market.this is because the demand for a certain factor can be determined by the number of firms currently utilizing that factor.for example,if the number of restaurants increases in a certain area,the demand for new waiters, waitresses,cooks and other forms of gastronomy workers will increase.An increase in the number of firms would result in an outward shift in the labour demand curve.

    4)Changes in demand for a product that labour produces:If there is an increase in demand for new vehicles,we would likely see an increase in demand for rae materials used in vehicle production.this would lead to an increase in demand for workers as firms would need people to manufacture the vehicles.this would shift the labour demand curve outwards.

    5) Profitability of Firms:If a firms profitability increases,it will be able to hire more workers.this would lead to an increase in the demand for labour.conversely,a firm that is making no profit and is consistently registering losses will need to lay off workers as it will not be able to pay them anymore.this would subsequently reduce the demand for labour and shift the demand curve of labour inwards.

  118. Avatar Senator Odurukwe Nene Abby says:

    Senator-Odurukwe Nene Abby
    100L
    2021/243517
    Abbysenator@gmail.com
    Nursing sciences

    1.Briefly discuss the elementary theory of utility.
    The benefits or satisfaction which an individual gets from consuming a good or service is known as utility. The concept of utility is used to explain a consumer’s tastes and preferences. Utility is important in determining why different goods have different costs and levels of demand. A product with high utility usually has more demand, which means they can command higher prices. Utility expresses an economic concept that has a basis in reality, but cannot measure the exact value that a product provides. This means that there is no way to say that, for example, an ice cream offers 1 unit of utility, and a plate of jollof rice offers 4 unit of utility. One example of utility is the satisfaction that one gets when they eat food. People need water to survive, but some water have higher quality than others.Drinking distilled water offers more utility than drinking dirty water because it satisfies a persons thirst without the potential of that individual falling sick.

    2.Mention and discuss the different views of utility according to the two schools of thoughts which you have been taught.
    a.) Cardinal School of thought b.) Ordinal School of thought
    a.) Cardinal School of thought; This approach explains that utility can be measured. This means that after an individual consumes a good, his satisfaction can be measured or evaluated through the use of figures ranging from 0 to infinity.

    b.) Ordinal School of thought; This explains that the level of satisfaction obtained from a good cannot be measured using numbers but can be arranged in the order of preference of the consumer.

    3.) Explain the demand for and pricing of productive factors emphasizing on the labour market.

    The demand for factors of production is a derived demand. Using labour as a case study, the demand for labour isn’t the demand for labour itself instead it is the demand for the goods and services the labour factor offers. This shows that when the demand for goods increases, the demand for the factor will produces that exact good will increase as well. There are certain conditions that affects the demand for a factor of production. These include;
    -There would be high demand for a factor of production if it is highly important in the production process.
    -There would be low demand for a factor of production if it has close substitutes.
    Demand for labor is a concept that describes the amount of demand for labor that an economy or firm is willing to employ at a given point in time. Using a beans factory as an example; If the extra bags of beans that is produced by hiring one more unit of labor adds more to total revenue of the business than it adds to the total cost, the firm will increase total profit by increasing its use of labor. It will continue to hire more labor up to the point that the extra revenue generated by the additional labor no longer exceeds the extra cost of the labor. According to economic theory, profit-maximizing firms will hire workers up to the point where the marginal revenue product is equal to the wage rate because it is not profitable for a firm to pay its workers more than it will earn in revenues from their labor.

    -Pricing of factors of production is associated with the prices that an entrepreneur pays to avail the services rendered by the factors of production. If there is an increase is wage rate, demand for labour will fall and supply will rise. This may cause competition among labourers and will influence the wage rate to fall resultantly. If there’s a fall in wage rate then supply of labour will fall and demand will rise which may influence the producers to employ more labour at a lower wage rate

  119. Avatar Humphrey Favour Odinakachi says:

    Name:Humphrey Favour Odinakachi
    Department:Public administration and local government
    Reg no.:2021/245861
    Faculty: Social Sciences
    Level: 100 level

    1.Utility refers to the ability of goods or services to satisfy unlimited human wants. It can also be seen as the satisfaction or pleasure derived by an individual from the consumption of goods and services. The concept of a consumer’s tastes or preferences is an important step in determining how a consumer maximizes satisfaction in spending income.

    2. The two school of thoughts are the cardinal and the ordinal schools of thoughts.
    *The cardinal school of thought: This school of thought emphasizes that utility is measurable. This means that the quantity of goods or services that satisfies the need of a consumer can be evaluated through the use of figures ranging from zero to infinity.
    *The ordinal school of thought: The ordinal approach of utility requires that consumers make a scale of preference by choosing between the various commodities that gives one the same level of satisfaction. This approach assumes that utility can be ranked at various levels of consumption. It makes use of an indifference curve (a curve that indicates the levels of satisfaction attained by a consumer from the consumption of two commodities)

    3. The theory of pricing of productive factors is also known as ‘demand and supply theory’. According to the theory, just as the price of a commodity is determined by the forces of demand and supply, the price of productive factors is also determined by the demand for that factor and its supply.
    The demand for a factor is not a direct but an indirect or derived demand. For example,the demand for labour is not demand for labour himself,but demand for goods and services which the labour produces. This when demand for goods increases,the demand for the productive factors of those goods would also increase.

  120. Avatar NDUKWU MIRACLE; says:

    NAME : NDUKWU MIRACLE
    REG.NO: 2021/243991
    DEPARTMENT: BUSINESSES EDUCATION
    FACULTY: VOCATIONAL AND TECHNICAL EDUCATION

    ECO 101
    ANS(1)
    I’m economics,utility theory tries to explain the behavior of individual consumeer in an economy. Utility theory argues that each person,given a list of options,can rank those options in a precise order of preference.each person has different choice which are set,not changing overtime.

    ANS(2)
    2(a)PHILOSOPHICAL SCHOOL OF THOUGHT
    b)ECONOMICS SCHOOL OF THOUGHT

    2(a) PHILOSOPHICAL SCHOOL OF THOUGHT:In Plato’s Republic amd in his other writing we see a.development of idealism,According to him,every object of our experience is nothing but shadow,that is saying that it is not in A pure state of reality.
    2(b) ECONOMIC SCHOOL OF THOUGHT:in the history of economic thoughts,a school of economic thoughts is a group of economic thinkers who share or shares a common perspective on the way economic works.

    ANS(3)the demands for labour isban economic principle derived from the demands for a firms outline.that is,if demands for a firms output increases,the firm will demand more labour thus hiring more staff….

  121. Avatar Augustine Chinenye Maryann says:

    Name :Augustine Chinenye Maryann
    Department:Nursing science
    Reg number: 2019/245588
    Course :Eco 101
    Date: 13/03/2023
    Topic:Utility

    ASSIGNMENT
    1: Briefly discuss the elementary theory of utility.
    In economics, utility is concerned with the value or worth of a particular good, service, or commodity. It implies that products and services are ordered according to importance.
    Moreover, the level of enjoyment a consumer experiences when using goods and services at a specific moment.

    2: Mention and discuss the different views of utility according to the two schools of thought which you have been taught.
         Cardinal school and ordinal school of thought.
    • Cardinal school of thought.
    This approach emphasizes that utility is measurable. That is, after consuming a given quantity of a commodity the consumer can easily evaluate his satisfaction through the use of figures which range from zero to infinity. It believes in measuring the satisfaction level in utilis.
            Assumptions of cardinal approach
    – Utility is measurable
    – The consumer is rational
    – There’s diminishing marginal utility
    – Total utility depends on the quantity consumed
    – Money income of the consumer is held constant
    • Ordinal school of thought.
    This approach states that the utility cannot be measured in exact numbers but can only be ranked or put into order. This approach argues that utility is completely a psychological element and cannot be expressed in cardinal numbers

    3: Demand for pricing of productive factors emphasizing on the labor market.
         Demand for labor shows how many workers the firms are willing and able to hire at a given time and wage rate.
         For firms to demand more labors, the labor productivity must be at increase, this would shift the labor demand curve outwards.
     

  122. Avatar ANAGHARA ESTHER CHIBUZOR says:

    NAME: ANAGHARA ESTHER CHIBUZOR
    MATRIC NO.: 2021/241940
    DEPT: ECONOMICS
    EMAIL: anagharachibuzor205@gmail.com
    COURSE CODE: ECO 101

    Q1 ELEMENTARY THEORY OF UTILTY.
    Utility theory in economics pertains to the value or worth of a certain good, service, or item. It suggests that goods, services, and items can be ranked according to their usefulness. With respect to theory, the utility of an item tends to be closely correlated to its price. An item such as gold, which is very useful and thus has great utility (combined with its scarcity), is very expensive. Total utility is closely tied to the bare concept of utility. Total utility points to the aggregate amount of usefulness and fruition there is to be gained from the use of a specific good, service, or other item. Furthermore, the abstract measurement of utility is another key concept of the theory. Although it’s hard to calculate the exact utility of something, economists use abstract measurements to capture the usefulness of things.

    Q2. VIEWS OF UTILITY ACCORDING TO THE TWO SCHOOL OF THOUGHTS.

    ORDINAL SCHOOL OF THOUGHT.
    The concept of ordinal utility states that the level of satisfaction a consumer obtains after consuming various commodities cannot be measured in numbers but can be arranged in the order of preference.

    CARDINAL SCHOOL OF THOUGHT.
    The Cardinal Utility approach is propounded by neo-classical economists, who believe that utility is measurable, and the customer can express his satisfaction in cardinal or quantitative numbers, such as 1,2,3, and so on.These quantitative measures is also known as “utils”.

    Q3. THE DEMAND FOR AND PRICING OF PRODUCTIVE FACTORS EMPHASIZING ON THE LABOUR MARKET.

    The demand for labour shows how many workers the firms are willing and able to hire at a given time and wage rate.
    Therefore, demand for labour is a concept that illustrates the amount of labour a firm is willing to employ at a particular wage rate. However, the determination of equilibrium in the labour market will also depend on the supply of labour. Equilibrium in the labour market depends on the wage rate firms are willing to pay and the amount of labour willing to provide the necessary work.

  123. Avatar Name: Edera_ugwu Kennedy chidubem Reg No: 2021/242133 Dept: PALG Level: 100 says:

    (1) UTILITY THEORY
    Utility” is a concept that has been used to describe these tastes. As already indicated, the cost-of-production analysis of value given above is incomplete, because cost itself depends on the quantity produced. The cost analysis, moreover, applies only to commodities the production of which can be expanded and contracted. The price of a first-folio Shakespeare has no relation to cost of production; it must depend in some sense on its utility to purchasers as it affects their bids.
    (2) Cardinal utility school of thought
    (ii) ordinal utility school of thought

    (2i)Cardinal Utility is the idea that economic welfare can be directly observable and be given a value.

    For example, people may be able to express the utility that consumption gives for certain goods. For example, if a Nissan car gives 5,000 units of utility, a BMW car would give 8,000 units. This is important for welfare economics which tries to put values on consumption. For example, allocative efficiency is said to occur when Marginal cost = Marginal Utility.

    One way to try and put values on goods utility is to see what price they are willing to pay for a good.

    If we are willing to pay £5,000 for a second-hand Nissan Car, we can infer we must get 5,000 utils. In other words, the value of cardinal utility is related to the price we are willing to pay.

    The idea of cardinal utility is important to rational choice theory. The idea consumers make optimal choices to maximise their utility.

    (2ii)In ordinal utility, the consumer only ranks choices in terms of preference but we do not give exact numerical figures for utility.

    For example, we prefer a BMW car to a Nissan car, but we don’t say by how much.

    It is argued this is more relevant in the real world. When deciding where to go for lunch, we may just decide I prefer an Italian restaurant to Chinese. We don’t calculate the exact levels of utility.

    Carl Menger, an Austrian economist, developed concepts of utility which rested on ranked preferences.

    (3)We can define a perfectly competitive labor market as one where firms can hire all the labor they wish at the going market wage. Think about secretaries in a large city. Employers who need secretaries can probably hire as many as they need if they pay the going wage rate.

  124. Avatar Nwaeze Chidiebube Francis 2020/242513 says:

    1. Theory of Utility: Utility may be defined as the ability of a commodity or service to satisfy consumers wants. Therefore when a consumer derives satisfaction from the consumption of any commodity or service, it can be said that commodity or service possesses utility. In other words, any commodity or service that possesses utility is useful to the consumer that used it. As a result of the fact that usefulness is a relative term, therefore, what may be useful to one person may not be to another. Utility
    therefore, is relative to a consumer depending on the time, place, form, nd possession etc. A commodity that can satisfy a consumer’s want at a particular points in time and place may not satisfy another’s want.Utility then depends on the form of the commodity, individual’s time and place.

    2. Cardinal school of thoughts: The approach emphasizes that utility is measurable. That is after consuming a given quantity of a commodity the consumer can aim or calculate his satisfaction through the use of figures which range from 0 to infinity. Some economists who belong to this school of thought argue that utility can be measured subjectively in units called “Utils”. The assumptions of the cardinal approach are;
    I. Utility is measurable
    ii. The consumer is rational.
    iii. There is diminishing marginal utility.
    iv. Total utility (TU) depends on the quantity consumed.
    v. Money income of the consumer is held constant.

    b. Ordinal school of thoughts: Economist who belong to this school argue that it is not possible to measure utility (satisfaction). They opine that although utility cannot be precisely measured, it is possible for a consumer to make a choice between various bundles of commodities by ranking them according to the level of satisfaction expected from each bundle without specifying exact units of utility. The ordinal approach is based on the following assumptions:
    I. Total utility is determined by the quantities of commodities consumed.
    ii. Rationality of the consumer. He is rational because he considers the implications of his economics choices.
    iii. Utility order. The consumer can rank is preferences based on expected level of satisfaction.
    iv. Preferences of consumers can be ranked in terms of indifference curves which cannot the marginal rate of substitution of commodities.
    v. Consistency and transitivity of choice. The consumer is consistent in his choice and preference of one commodity over another.

    3. Labour market like other goods market in the economy are governed by the forces of demand and supply. The supply and demand for labour determine the wage or price paid for labour services. Like all prices, the price of labour (the wage) depends on supply and demand. The demand curve reflects the value of marginal product of labour. Therefore in equilibrium, workers receive the value of their marginal contribution to the production of goods and services.

  125. Avatar OGBU HARRISON CHINEMERE, SCIENCE LABORATORY TECHNOLOGY, PHYSICAL SCIENCES, 2020/244826 says:

    No.1
    What Is Utility?
    In economics, utility is a term used to determine the worth or value of a good or service. More specifically, utility is the total satisfaction or benefit derived from consuming a good or service. Economic theories based on rational choice usually assume that consumers will strive to maximize their utility.

    The economic utility of a good or service is important to understand because it directly influences the demand, and therefore price, of that good or service. In practice, a consumer’s utility is usually impossible to measure or quantify. However, some economists believe that they can indirectly estimate what is the utility of an economic good or service by employing various models.

    Understanding Utility
    The utility definition in economics is derived from the concept of usefulness. An economic good yields utility to the extent to which it’s useful for satisfying a consumer’s want or need.
    1
    Various schools of thought differ as to how to model economic utility and measure the usefulness of a good or service.

    Utility in economics was first coined by the noted 18th-century Swiss mathematician Daniel Bernoulli.
    2
    Since then, economic theory has progressed, leading to various types of economic utility.

    Ordinal Utility
    Early economists of the Spanish Scholastic tradition of the 1300s and 1400s described the economic value of goods as deriving directly from this property of usefulness and based their theories on prices and monetary exchanges.

    This conception of utility was not quantified, but a qualitative property of an economic good.
    3
    Later economists, particularly those of the Austrian School, developed this idea into an ordinal theory of utility, or the idea that individuals could order or rank the usefulness of various discrete units of economic goods.
    4

    Austrian economist Carl Menger, in a discovery known as the marginal revolution, used this type of framework to help him resolve the diamond-water paradox that had vexed many previous economists. Because the first available units of any economic good will be put to the most highly valued uses, and subsequent units go to lower-valued uses, this ordinal theory of utility is useful for explaining the law of diminishing marginal utility and fundamental economic laws of supply and demand.
    5

    Cardinal Utility
    To Bernoulli and other economists, utility is modeled as a quantifiable or cardinal property of the economic goods that a person consumes.
    2
    To help with this quantitative measurement of satisfaction, economists assume a unit known as a “util” to represent the amount of psychological satisfaction a specific good or service generates for a subset of people in various situations.
    5
    The concept of a measurable util makes it possible to treat economic theory and relationships using mathematical symbols and calculations.

    However, it separates the theory of economic utility from actual observation and experience, since “utils” cannot actually be observed, measured, or compared between different economic goods or between individuals.
    6

    If, for example, an individual judges that a piece of pizza will yield 10 utils and that a bowl of pasta will yield 12 utils, that individual will know that eating the pasta will be more satisfying. For the producers of pizza and pasta, knowing that the average bowl of pasta will yield two additional utils will help them price pasta slightly higher than pizza.

    Additionally, utils can decrease as the number of products or services consumed increases. The first slice of pizza may yield 10 utils, but as more pizza is consumed, the utils may decrease as people become full. This process will help consumers understand how to maximize their utility by allocating their money between multiple types of goods and services as well as help companies understand how to structure tiered pricing.

    Economic utility can be estimated by observing a consumer’s choice between similar products. However, measuring utility becomes challenging as more variables or differences are present between the choices.

    No.2

    In Plato’s Republics and in his other writings we see a development of idealism. According to him, every object of our experience is nothing but shadow. That is saying that it is not in a pure state of reality. Whatever we perceive is merely a poor copy of the reality that exists in another world which he designates as the world of Forms or Ideas. Thus Plato’s Idealism talks of two worlds: the world of shadows and the world of Ideas. The latter is replete with absolute perfection, real, unchangeable, universal and eternal realities whereas the former is the world of imperfect copies of things residing in the real world of ideas. The implication is that every material thing must have its true copy in the world of ideas. Idealist would say that even the pen you are having now is only an imperfect copy or a shadow of the ideal pen in the world Ideas. Though there may ne various strands of idealism, the basic tenet is the emphasis that existence is explained in terms of the mind and its function.

    Other Views on Idealism

    Since Plato, there have been many understanding of idealism. Descartes is one such Idealist. He holds that the most important element in the nature of knowledge is mind or spirit. This idea is beautifully expressed in his popular philosophical dictum. Corgito ergo sum (I think, therefore I exist). This idealistic statement has so much implication for Descartes who doubted the reality of anything having material nature and would only accept as reality the thought that he is thinking. Bishop George Berkeley also advanced the school of idealism in modern times by his esse est percipi (to be is to be perceived) . What is real is that which can be perceived, what cannot be perceived is unreal.

    To put it more correctly again, the central thesis of idealism is that true knowledge can be derived from reason alone since it is only the faculty of reason that can grasp or extract from material things their spiritual forms or essences. The faculty of the senses provides the mind with imperfect, unstable and changing knowledge of physical objects.

    Educational Implication of Idealism

    1. For Plato, Education simply means stimulation of the mind to recall that which it already knows before its being in the world. He taught that the soul I born with innate knowledge which it lost with contact with the material world (human body). Thus the concept of school and education is to create an enabling environment where students are encouraged to recall and embrace the concept of the Good and the universal truth that already exist in their soul which has been forgotten. An idealistic educational system would concern itself with ideas of things. The goal of education should be connected with the lifetime work of searching for true ideas. It should be to cultivate the human mind.

    2. Idealism prefers the world of the spiritual to the world of material things. Thus, in education, effort is made to create an enabling environment for the orientation of the youngster towards spiritual things or toward ideas.

    3. As a result of the basic tenet of Idealism, educational curriculum is made of humanities (languages, literature, philosophy, religion, etc) and social studies. These subject are idea-based. Thus they are to awaken in students the basic ideas of the universe. They help in the cultivation of the mind. Not that idealist do not consider physical training, vocational training and sciences, they consider them but only in the subordinate manner.

    Realism

    Realism as a philosophy is traceable to Aristotle, the famous student of Plato, (384-322 BC). He is acclaimed to be the father of realism just as Plato is believed to be the propounder of idealistic tradition in Western Philosophy.

    The contention of Realism is that objects of our sensual perceptions are real in themselves, whether the mind perceives it or know it or not. The basic tenet of realism is that reality and knowledge of things can be acquires independent of the mind that perceives them. In other words reality is extramentasl and not intramental, i.e. it exists outside the mind and not within the mind as ideas. The implication of the realist epistemology is that everyday experience is true knowledge. “Our dependable knowledge if external reality is possible. Physical reality asserts, as fact, that the actual sticks, stones and trees of the universe exist whether or not there is a human mind to perceive them”. Ozmon & Craver (1995). “The realist prioritizes a worl of ‘things; as opposed to a world of idea Jacobsen, (1842-1910).

    Some of the proponents of Realism are Baruch Spinoza (1632-1677), John Locke (1632-1704), American Philosopher-Psychologist, William James, (1842-1910), etc.

    Realism is antithetical to Idealism. It upholds that the view that matter is real and not shadows or “copies” of the real which exist in the spiritual/immaterial world. In its proposition, realism says that our concrete materials world is capable of furnishing human mind with reality. And these realities are independent of the perceiving mind. It is in opposition to \berkeleyan theory of esse est percipi (to be is to be perceived) which virtually equares existence with perception such that an object cannot be said to exist if there is no body or some ‘mind’ to perceive it. Agudosi (2033:58)

    Realism is like an umbrella term that covers many other philosophies which can be said to be sub-schools of realism. These sub-schools believe that reality is perceptible, concrete and outside the mind. Thus we have the following ‘Realisms’.

    1. Aristotelian Realism

    2. Scholastic Realism

    3. Natural or Scientific Realism

    Aristotelian Realism: This is also known as classical realism because it is the premier realism of western culture. As the name suggests, it is an intellectual product of Aristotle. He was a student of Plato, but disagreed with his master on what is the nature of human knowledge. Do we actually perceive things the way they are, or do we perceive them as they appear to us? That is to ask if the concrete data of our experiences are real or imaginary? That is why he wrote on almost all the fields of human knowledge: poetry, rhetoric, ethics, politics, meteorology, embryology, physics, mathematics, metaphysics, anatomy, physiology, logic, dreams and so forth.

    “Aristotle viewed reality as a uniting of both actuality (form) and potentiality (matter). Both must be united in order for something to be real or to truly exist”, and that is the principle of his Aristotelian Hylemorphism. All things are made of matter. What makes one matter different from another? It is the form (morphe), the differentiating or the individuating principle of matter. It is evident that every object of our daily experience is made up of matter and form and it is this co-existence of matter and form in reality that Aristotle designates as Hylemorphism. It is then the form that make something what it is, as against or different from what is not. When both matter and form are not present, knowledge is not possible.

    Aristotle described the relationship between form and matter with the Four Causes:

    Material cause – the matter from which something is made;
    Formal cause – the design that shapes the materials object;
    Efficient cause – the agent that produces the object; and
    Final cause – the direction toward which the object is tending.
    Through these different forms, Aristotle demonstrated that matter was constantly in a process of change. He believed that God, the Ultimate Reality held all creation together. Organization was very important in Aristotle’s philosophy. He maintained that human beings as rational creatures are fulfilling their purpose when they think, and thinking are their highest characteristic.

    Furthermore, realism unlike idealism does not talk about dual world of matter and form in order to explain human knowledge. For realists, there is only “a world” of reality.

    Educational Implications of Realism

    1. Religious realists do not limit knowledge to the phenomenal world alone, but hold that knowledge acquired through the senses is real; rational knowledge does not form the entire domain of reality. There is a being responsible for their existence. The cosmos are real, and they point to the existence of a higher Being. Furthermore, the study of God reveals that man always depends on God for his perfection and self-fulfillment. Therefore, education must recognize and incorporate this fact. Okafor (1981) writes that this is the basic educational task of scholastics. “The two domains (the natural and the supernatural) are complimentary elements in man’s effort towards the attainment of his ultimate self-fulfillment and complete actualization”.

    2. The scientific realism sees the environment and the training of the senses for perception as against empty memorization of abstract things. It is a total rejection of the classical method whereby the child is made to memorizing knowledge by rote system. The child is given enormous freedom to discover knowledge and is given freedom to think through situations rather than accepting authority as source of human knowledge. One major criterion for knowledge here is the inductive method of observation, experimentation, formulation of hypothesis and laws which eventually form what is known today as scientific knowledge. This implies that nay knowledge that cannot be verified inductively is committed to the flames, and more so are dogmas. Education is better dome God-free.

    Appreciable is the influence of Scientific knowledge to life. It has actually advanced the welfare of man in the society. But care must be taken not to reduce life to what can be tested, evaluated and decided in the laboratory. Life is always larger than scientific logic.

    No.3

    When producing goods and services, businesses require labor and capital as inputs to their production process. The demand for labor is an economics principle derived from the demand for a firm’s output. That is, if demand for a firm’s output increases, the firm will demand more labor, thus hiring more staff. And if demand for the firm’s output of goods and services decreases, in turn, it will require less labor and its demand for labor will fall, and less staff will be retained.

    Labor market factors drive the supply and demand for labor. Those seeking employment will supply their labor in exchange for wages. Businesses demanding labor from workers will pay for their time and skills.

    BREAKING DOWN Demand for Labor
    Demand for labor is a concept that describes the amount of demand for labor that an economy or firm is willing to employ at a given point in time. This demand may not necessarily be in long-run equilibrium. It is determined by the real wage firms are willing to pay for this labor and the number of workers willing to supply labor at that wage.

  126. Avatar NDUKWU MIRACLE; says:

    NAME: NDUKWU MIRACLE CHINAZA

    REG. NO:2021/243991

    FACULTY:VOCATIONAL AND TECHNICAL EDUCATION.

    DEPARTMENT:BUSINESS EDUCATION

    ECO 101

    ANS(1)..In economics,utility is a term used to determine the worth or value of a good or services.more specifically,utility is the total satisfaction or benefit derived from consuming a goods or services.Utility theory argues that each person,given a list of options,can rank those options in a process order of preference.Economic theories based on rational choice usually assumptions that consumers will strive to maximize their utility..

    ANS(2)…
    i)PHILOSOPHICAL SCHOOL OF THOUGHT.
    ii)SCHOOL OF ECONOMIC THOUGHT.

    i)PHILOSOPHICAL SCHOOL OF THOUGH: in Plato’s Republic and in his other writing s we see a development of idealism.According to him every object of our experience is nothing but shadow.That is saying that it is not in a pure state of reality.whatever we perceive is merely a poor copy of the reality that exist in another world which he designated as the world of forms of ideas,This Plato’s idealism talks of two worlds: THE WORLD OF SHADOW AND THE WORLD OF IDEAS.

    ii)SCHOOL OF ECONOMIC THOUGHT:in the history of economics thought,a school of economic thought is group of economic thinkers who shares a common perspective on the way economies work.While economist, do not always fit in particular schools,particularly in modern times classifying economist school of thought is common. Economic thought maybe roughly divided into three phrases.
    Currently the great majority of economist follow an approach referred to as MAINSTREAM ECONOMIST….

    ANS(3)…The demand for labour shows how many workers a firm are willing to hire at a given time and wage rate.
    Therefore,demand for labour is concept that illustrates the amount of labour a firm is willing to employer at a particular time and wage rate.However,the determination of equilibrium in the labour market will also depend on the supply of labour.Equilibrium in the labour market depends on the wage rate forms are willing to pay and the amount of labour willing to provide the necessary work.

  127. Avatar IBE CHIEMERIE KENNETH says:

    NAME: IBE CHIEMERIE KENNETH
    REG NO: 2021/242468
    DEPARTMENT: NURSING SCIENCES
    EMAIL: ibechiemerie60@gmail.com
    1. The elemental theory of utility is a theory that attempts to explain how individuals derive satisfaction or utility from consuming goods and services. According to this theory, utility is composed of elemental units or “utils,” which are the smallest possible units of satisfaction that can be derived from a particular good or service.

    The elemental theory of utility suggests that as individuals consume more of a good or service, the amount of satisfaction they derive from each additional unit decreases. This is known as the law of diminishing marginal utility. For example, the first slice of pizza you eat might give you a lot of satisfaction, but as you continue to eat more slices, the satisfaction you derive from each additional slice will decrease.
    Overall, the elemental theory of utility helps economists and individuals understand how people make choices about consuming goods and services based on the amount of satisfaction or utility they expect to derive from them.

    2. Cardinal Utility
    Ordinal Utility
    Cardinal Utility: Cardinal Utility is the utility where the satisfaction derived by consuming a product can be expressed numerically. It has a quantitative approach, and is examined using marginal utility analysis. It was promoted by Traditional and Neo classical Economist and it is less realistic.
    Ordinal Utility: Ordinal utility is the utility where satisfaction derived by consuming a product cannot be expressed numerically. It has a qualitative approach and is examined using indifference curve analysis. It is promoted by Modern Economist, and it is more realistic.

    The demand for pricing of productive factors, including labor, is determined by the supply and demand of the factors of production in the market. The labor market, in particular, illustrates this relationship.

    3.In the labor market, the demand for labor is influenced by the demand for goods and services produced by the labor. If there is a high demand for a particular good or service, firms producing that good or service will require more labor to increase production. As a result, the demand for labor will increase, and firms will be willing to pay higher wages to attract and retain employees.

    On the other hand, the supply of labor is influenced by the number of individuals who are willing and able to work. Factors that affect the supply of labor include population growth, educational attainment, and changes in social norms, among others. If the supply of labor increases while the demand for labor remains constant, the wage rate will decrease as firms will have more workers to choose from and will not have to pay as much to attract employees.

    Conversely, if the demand for labor increases while the supply of labor remains constant, the wage rate will increase as firms compete to attract a limited pool of workers. This may lead to a labor shortage, which can cause wages to rise even further.

    Therefore, the pricing of labor is determined by the intersection of the demand and supply curves in the labor market. If the demand for labor increases relative to the supply of labor, wages will rise. If the supply of labor increases relative to the demand for labor, wages will fall.

  128. Avatar Okoronkwo Chioma Promise 244/505 says:

    1. Theory of Utility
    Utility theory bases its beliefs upon individuals’ preferences. It is a theory postulated in economics to explain behavior of individuals based on the premise people can consistently rank order their choices depending upon their preferences. Each individual will show different preferences, which appear to be hard-wired within each individual. We can thus state that individuals’ preferences are intrinsic. Any theory, which proposes to capture preferences, is, by necessity, abstraction based on certain assumptions. Utility theory is a positive theory that seeks to explain the individuals’ observed behavior and choices.The distinction between normative and positive aspects of a theory is very important in the discipline of economics. Some people argue that economic theories should be normative, which means they should be prescriptive and tell people what to do. Others argue, often successfully, that economic theories are designed to be explanations of observed behavior of agents in the market, hence positive in that sense. This contrasts with a normative theory, one that dictates that people should behave in the manner prescribed by it. Instead, it is only since the theory itself is positive, after observing the choices that individuals make, we can draw inferences about their preferences. When we place certain restrictions on those preferences, we can represent them analytically using a utility function—a mathematical formulation that ranks the preferences of the individual in terms of satisfaction different consumption bundles provide. Thus, under the assumptions of utility theory, we can assume that people behaved as if they had a utility function and acted according to it. Therefore, the fact that a person does not know his/her utility function, or even denies its existence, does not contradict the theory. Economists have used experiments to decipher individuals’ utility functions and the behavior that underlies individuals’ utility.
    2. Two views of utility according to Economic School of Thought
    Cardinal Utility
    The notion of Cardinal utility was formulated by Neo-classical economists, who hold that utility is measurable and can be expressed quantitatively or cardinally, i.e. 1, 2, 3, and so on. The traditional economists developed the theory of consumption based on cardinal measurement of utility, for which they coined the term ‘Util ‘ expands to Units of utility. It is assumed that one util is equal to one unit of money, and there is the constant utility of money.
    Further, it has been realised with the passage of time that the cardinal measurement of utility is not possible, thus less realistic. There are many difficulties in measuring utility numerically, as the utility derived by the consumer from a good or service depends on a number of factors such as mood, interest, taste, preferences and much more.
    *Ordinal Utility
    Ordinal Utility is propounded by the modern economists, J.R. Hicks, and R.G.D. Allen, which states that it is not possible for consumers to express the satisfaction derived from a commodity in absolute or numerical terms. Modern Economists hold that utility being a psychological phenomenon, cannot be measured quantitatively, theoretically and conceptually. However, a person can introspectively express whether a good or service provides more, less or equal satisfaction when compared to one another.
    In this way, the measurement of utility is ordinal, i.e. qualitative, based on the ranking of preferences for commodities. For example: Suppose a person prefers tea to coffee and coffee to milk. Hence, he or she can tell subjectively, his/her preferences, i.e. tea > coffee > milk.
    The following points differentiate between cardinal and ordinal utility:

    1. Cardinal utility is the utility wherein the satisfaction derived by the consumers from the consumption of good or service can be measured numerically. Ordinal utility states that the satisfaction which a consumer derives from the consumption of product or service cannot be measured numerically.
    2. Cardinal utility measures the utility objectively, whereas there is a subjective measurement of ordinal utility.
    3. Cardinal utility is less realistic, as quantitative measurement of utility is not possible. On the other end, the ordinal utility is more realistic as it relies on qualitative measurement.
    4. Cardinal utility, is based on marginal utility analysis. As against this, the concept of ordinal utility is based on indifference curve analysis.
    5. The cardinal utility is measured in terms of utils, i.e. units of utility. On the contrary, the ordinal utility is measured in terms of ranking of preferences of a commodity when compared to each other.
    3. Demand for and Price of Labour with respect to Labour Market
    Demand for labor is a concept that describes the amount of demand for labor that an economy or firm is willing to employ at a given point in time. This demand may not necessarily be in long-run equilibrium. It is determined by the real wage firms are willing to pay for this labor and the number of workers willing to supply labor at that wage.
    When producing goods and services, businesses require labor and capital as inputs to their production process. The demand for labor is an economics principle derived from the demand for a firm’s output. That is, if demand for a firm’s output increases, the firm will demand more labor, thus hiring more staff. And if demand for the firm’s output of goods and services decreases, in turn, it will require less labor and its demand for labor will fall, and less staff will be retained.
    Labor market factors drive the supply and demand for labor. Those seeking employment will supply their labor in exchange for wages. Businesses demanding labor from workers will pay for their time and skills.
    Markets for labor have demand and supply curves, just like markets for goods. The law of demand applies in labor markets this way: A higher salary or wage—that is, a higher price in the labor market—leads to a decrease in the quantity of labor demanded by employers, while a lower salary or wage leads to an increase in the quantity of labor demanded. The law of supply functions in labor markets, too: A higher price for labor leads to a higher quantity of labor supplied; a lower price leads to a lower quantity supplied.

  129. Avatar Uzoman Michael Onyedikachi says:

    1. Theory of utility In economics, utility theory tries to explain the behavior of individual consumers in an economy. This theory argues that each person, given a list of options, can rank those options in a precise order of preference. Each person has different choices which are set, not changing over time and also the measurement Of individual choice.

    2. There is cardinal and ordinary types. The cardinal deals with measurement of individual wants or choice The cardinal utility states that the level of satisfaction a consumer acquires after consuming any goods and services can be measurable and expressed in quantitative numbers WHILE Ordinal utility states that the satisfaction which a consumer derives from the consumption of good or service cannot be expressed numerical units. Approach.

    3. For curves, labour productivity increases, firms will demand more labour at each wage rate and the firm’s demand for labour itself will increase. This would shift the labour demand curve outwards then
    demand for labour is a concept that illustrates the amount of labour a firm is willing to employ at a particular wage rate. However, the determination of equilibrium in the labour market will also depend on the supply of labour.

  130. 1. Utility is defined as the amount of satisfaction the user of a commodity gains at a particular point in time. It is not the same as the usefulness of the commodity.

    2. Different views on utility according to the school of taught are; (a) Cardinal school of taught (b) Ordinal school of taught.

    (a) Cardinal school of thought : The Cardinal approach to the cosumer behavior argued that utility can be measured in utils.
    In other words, it is believed that the satisfaction a consumer derived from the consumption of a particular commodity is measurable in quantitative terms called utils. This approach emphasizes that utility is measurable, that is, after consuming a given quantity of commodity, the consumer can simply evalute his satisfaction through the use of figures which ranges from Zero (0) to infinity (…..).

    2b Ordinal school of thought : This concept states that the level of satisfaction a consumer obtains after consuming various commodities. It cannot be measured in numbers but can be arranged in order of preference. e.g; we prefer an apple product to an itel product, but we don’t say by how much it is argued that is more relevant in the real world.
    It is also expressed as the utility analysis or indifference curve. This approach argues that utility or satisfaction is completely a psychogical element and it cannot be expressed in Cardinal numbers.

    3a. Demand for pricing of products is a concept that decribes the amount of demand for labour that an economy or firm is willing to employ at a given point in time.
    This demand may not necessarily be in to the long-run equilibrium. It is determined by the real wage firms are willing to apply for this labour and the number of workers willing to supply labour at that wage.

    3b. Factor pricing is associated with the prices that an entrepreneur pays to avail the services rendered by the factors of production. For e.g; an entrepreneur needs to pay wages for labour, rents for availing land and interest for capital so that he or she can earn maximum profit.

  131. Avatar Name: ONUORA SUSSAN CHINEDU Reg no 10761468AJ department of public administration and local government course code : Eco 101: says:

    Success Tonics Blog

    Eco 101 Online Quiz and Discussion (Utility and others)—-6/3/2023
    Tony Orji by Tony Orji March 6, 2023Reading Time: 1 min read
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    Eco 101 Online Quiz and Discussion (Utility and others)—-6/3/2023
    1) Briefly discuss the elementary theory of utility.
    2) Mention and discuss the different views of utility according to the two schools of thoughts which you have been taught.
    3) Explain the demand for and pricing of productive factors emphasizing on the labour market.

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    Comments 0
    Name: ONUORA SUSSAN CHINEDU. Reg No :10761468AJ. Course code : Eco 101. Department: public administration and local government. Level : 100. Faculty of social science Your comment is awaiting moderation
    8 hours ago
    1 utility is a term use to determine the worth or value of a good or service more specifically, utility is the satisfaction or benefits derived from consuming a good or services.
    Utility theory bases it’s believe upon individuals preference.it is a theory postulated I’m economics to explain behavior of individuals based on the premise people can consistently rank order their choices depending upon their preference. We can this state that individuals preference are intrisian any theory which proposes to get preferences is by necessity abstraction based on certain assumption. Utility theory is a positive theory that seeks to explain the individual observe behavior and choice, the difference between normative and positive aspect of a theory is very important in the discipline of economics. Some scholars argue that economics theories should be normative meaning that they should be prescriptive and tell people what to do.while some argue often successfully that economic theories are designed to explanation of observed behavior of agent in market vice positive in that aspect.
    Under the assumption of utility theory, we can assume that people bahaved as if they had a utility function and acted according to it therefore, the fact that a person does not know his or her utility function or even denied it’s existence does not contradict the theory. Economics have used experiment to decipher individuals utility function and behavior that that lies individuals utility.
    Individual faces a set of consumption bundles, so we assume that to have a clear preference that enable them to ‘rank order’ all bundle based on desirability that is the level of satisfaction each bundle shall provide to each individual. It ranks ordering based on preference tells as the theory itself has ordinal and cardinal utility
    ASSUMPTION OF UTILITY THEORY
    1COMPLETENESS: Individuals can have rank order all possible bundles, ranking ordering shows that the theory assume that no matter how many combination of consumption bundle are placed in front of individuals, Each individual can rank them in some order based on the preference this means that the individual can compare any bundle with any other bundle rank them in order of the satisfaction each bundle provide. Mathematically this property where in an individuals preference enable him or her to compare any given bundle with any other bundle is called the completeness property of preference.
    2 MORE IS BETTER: in this aspect we assume that an individual prefers the consumption of bundle A of good to bundle B. And then he is offered another bundle which contains more of everything in bundle A that is the new bundle is represented by aA where a = 1. The more is better assumption says that individuals prefer aA to A itself. Mathematically the more is better assumption is called Monotonicity assumption on preference. One can argue that this assumption breaks down frequently.
    3 MIX IS BETTER: we assume that the individual is indifference to the choice between one week of clothing Alone and one week of food thus choice itself is not preferred over the other.
    The mix better assumption about preference says that a mix of two say half weeks of food mixed with half week of clothing will be preferred to both stand alone choice
    4 RATIONALITY: this is the most important assumption that lays down all of utility theory. Under the assumption of rationality individuals preference avoid any kind of circularity.
    Utility theories argues that each person give a list of options can rank those options in a precise order of preference, Each person have difference choice. In economics utility theory governs individuals decision making.
    2 THE DIFFERENT VIEW OF UTILITY ACCORDING TO THE TWO SCHOOLS OF TAUGHT
    A The ordinal utility
    B The cardinal utility
    ORDINAL UTILITY: refers to the satisfaction level after consuming any good or services cannot be scaled in numbers. However these things can be arranged in order of preference. Utility is ranked based on satisfaction, it is more practical and sensible. Whereas, these things can be arranged in order of preference. Two English economist John Hick and R.J Allen 1930 argued that the consumer behavior theory be introduced based on ordinal utility. According to the ordinal approach utility is a psychological phenomenon like happiness, welfare, and satisfaction. The ordinal theory is highly subjective and differs across individual therefore it cannot be measured in quantifiable terms the function that represents utility of a products according to it’s preference but does not provide any numerical figure is know as an ordinal utility
    A consumer preference can be demonstrated graphically through indifference curves. It becomes easy when there are two types of commodities (xy) when (x1,y1) and (x2,y2). That’s on the same curve line and ( x1,y1)
    This is an example of indifference curve map where the preference of goods are shown but not their quantity. The utility according to this approach can be measured in relative terms such as less than and greater than.this approach states that consume behavior can be explained in terms of preference on ranking. Utility can be ranked qualitatively rather than quantitatively
    CARDINAL UTILITY
    According to this concept, the utility can be expressed similarly to how weight and height are expressed, however the economics lacked a precise unit for utility, Hence the derived a psychological unit termed as util
    Until is not regarded as a standard unit because it varies from person to person place to place
    APPLICATION OF CARDINAL UTILITY
    Welfare Economics
    Marginalism
    Expected utility theory
    Intertemporal utility
    3 Demand for and pricing of productive factors emphasizing on the labour.
    What is Demand for Labor
    When producing goods and services, businesses require labor and capital as inputs to their production process. The demand for labor is an economics principle derived from the demand for a firm’s output. That is, if demand for a firm’s output increases, the firm will demand more labor, thus hiring more staff. And if demand for the firm’s output of goods and services decreases, in turn, it will require less labor and its demand for labor will fall, and less staff will be retained.

    Labor market factors drive the supply and demand for labor. Those seeking employment will supply their labor in exchange for wages. Businesses demanding labor from workers will pay for their time and skills.

    Reply
    Name: ONUORA SUSSAN CHINEDU. Reg No :10761468AJ. Course code : Eco 101. Department: public administration and local government. Level : 100. Faculty of social science Your comment is awaiting moderation
    1 hour ago
    1 utility is a term use to determine the worth or value of a good or service more specifically, utility is the satisfaction or benefits derived from consuming a good or services.
    Utility theory bases it’s believe upon individuals preference.it is a theory postulated I’m economics to explain behavior of individuals based on the premise people can consistently rank order their choices depending upon their preference. We can this state that individuals preference are intrisian any theory which proposes to get preferences is by necessity abstraction based on certain assumption. Utility theory is a positive theory that seeks to explain the individual observe behavior and choice, the difference between normative and positive aspect of a theory is very important in the discipline of economics. Some scholars argue that economics theories should be normative meaning that they should be prescriptive and tell people what to do.while some argue often successfully that economic theories are designed to explanation of observed behavior of agent in market vice positive in that aspect.
    Under the assumption of utility theory, we can assume that people bahaved as if they had a utility function and acted according to it therefore, the fact that a person does not know his or her utility function or even denied it’s existence does not contradict the theory. Economics have used experiment to decipher individuals utility function and behavior that that lies individuals utility.
    Individual faces a set of consumption bundles, so we assume that to have a clear preference that enable them to ‘rank order’ all bundle based on desirability that is the level of satisfaction each bundle shall provide to each individual. It ranks ordering based on preference tells as the theory itself has ordinal and cardinal utility
    ASSUMPTION OF UTILITY THEORY
    1COMPLETENESS: Individuals can have rank order all possible bundles, ranking ordering shows that the theory assume that no matter how many combination of consumption bundle are placed in front of individuals, Each individual can rank them in some order based on the preference this means that the individual can compare any bundle with any other bundle rank them in order of the satisfaction each bundle provide. Mathematically this property where in an individuals preference enable him or her to compare any given bundle with any other bundle is called the completeness property of preference.
    2 MORE IS BETTER: in this aspect we assume that an individual prefers the consumption of bundle A of good to bundle B. And then he is offered another bundle which contains more of everything in bundle A that is the new bundle is represented by aA where a = 1. The more is better assumption says that individuals prefer aA to A itself. Mathematically the more is better assumption is called Monotonicity assumption on preference. One can argue that this assumption breaks down frequently.
    3 MIX IS BETTER: we assume that the individual is indifference to the choice between one week of clothing Alone and one week of food thus choice itself is not preferred over the other.
    The mix better assumption about preference says that a mix of two say half weeks of food mixed with half week of clothing will be preferred to both stand alone choice
    4 RATIONALITY: this is the most important assumption that lays down all of utility theory. Under the assumption of rationality individuals preference avoid any kind of circularity.
    Utility theories argues that each person give a list of options can rank those options in a precise order of preference, Each person have difference choice. In economics utility theory governs individuals decision making.
    2 THE DIFFERENT VIEW OF UTILITY ACCORDING TO THE TWO SCHOOLS OF TAUGHT
    A The ordinal utility
    B The cardinal utility
    ORDINAL UTILITY: refers to the satisfaction level after consuming any good or services cannot be scaled in numbers. However these things can be arranged in order of preference. Utility is ranked based on satisfaction, it is more practical and sensible. Whereas, these things can be arranged in order of preference. Two English economist John Hick and R.J Allen 1930 argued that the consumer behavior theory be introduced based on ordinal utility. According to the ordinal approach utility is a psychological phenomenon like happiness, welfare, and satisfaction. The ordinal theory is highly subjective and differs across individual therefore it cannot be measured in quantifiable terms the function that represents utility of a products according to it’s preference but does not provide any numerical figure is know as an ordinal utility
    A consumer preference can be demonstrated graphically through indifference curves. It becomes easy when there are two types of commodities (xy) when (x1,y1) and (x2,y2). That’s on the same curve line and ( x1,y1)
    This is an example of indifference curve map where the preference of goods are shown but not their quantity. The utility according to this approach can be measured in relative terms such as less than and greater than.this approach states that consume behavior can be explained in terms of preference on ranking. Utility can be ranked qualitatively rather than quantitatively
    CARDINAL UTILITY
    According to this concept, the utility can be expressed similarly to how weight and height are expressed, however the economics lacked a precise unit for utility, Hence the derived a psychological unit termed as util
    Until is not regarded as a standard unit because it varies from person to person place to place
    APPLICATION OF CARDINAL UTILITY
    Welfare Economics
    Marginalism
    Expected utility theory
    Intertemporal utility
    3 Demand for and pricing of productive factors emphasizing on the labour.
    What is Demand for Labor
    When producing goods and services, businesses require labor and capital as inputs to their production process. The demand for labor is an economics principle derived from the demand for a firm’s output. That is, if demand for a firm’s output increases, the firm will demand more labor, thus hiring more staff. And if demand for the firm’s output of goods and services decreases, in turn, it will require less labor and its demand for labor will fall, and less staff will be retained.

    Labor market factors drive the supply and demand for labor. Those seeking employment will supply their labor in exchange for wages. Businesses demanding labor from workers will pay for their time and skills.

  132. Avatar NAME:Anagor Chiamaka Getrude .DEPARTMENT-palg.FACULTY-social sciences.REG NO:2021/242152 says:

    No 1
    The elementary theory of utility means the level of satisfaction a person derives from consuming a good or service ,when the product or service is useful to the consumer’s needs or wants ,they can achieve a certain level of utility from consuming it,eg we eat something because we are hungry,we drive a car to reach a certain destination.utility is involved in everything we do and we get satisfaction from consuming or using goods or services, utility theory is concerned with explaining individuals choices and measuring the satisfaction level from consuming a good or service,the level of satisfaction is measured in units,utility can be in form ,time and place

    No 2
    The two schools of thought that examined utility are .
    (a)cardinal school of thought
    (b)ordinal school of thought
    CARDINAL SCHOOL OF THOUGHT_cardinal school of thought is one of the idea that economic welfare can be directly observable and be given a value,this approach emphasizes that utility is measurable,that is after consuming a given quantity of a commodity ,the consumer can supply evaluate his satisfaction through the use of figures from zero to infinity,the idea of cardinal utility is important to rational choice theory,the idea consumers make optimal choices to maximize their utility ,it is an important concept in utilitarianism and neo classical economics.

    ORDINAL SCHOOL OF THOUGHT_ordinal concept of utility is propouded by the modern economists which states that it is not possible for consumers to express the satisfaction derived from a commodity in absolute or numerical terms ,in ordinal utility the consumer only ranks choices in terms of preference but we do not give exact numerical figures of utility,modern economists hold that utility being a psychological phenomenon cannot be measured quantitatively ,theoritically and conceptually ,however a person can introspectively express whether a good or service provides more,less or equal satisfaction when compared to one another.

    NO 3
    In the labour market ,households are on the supply side of the market and firm are on the demand side,in the market for financial capital ,households and firms can be on either side of the market ,they are suppliers of financial capital when they save or make financial investments and demanders of financial capital when they borrow or receive financial investments .
    I’m the demand and supply analysis of labour markets the price can be measured by the annual salary or hourly wage received.

  133. Avatar Nwabeke praisejah says:

    1 utility theory .There are also different types of utility, such as: f

    Form Utility – Worth of the good or service based on the combined resources it took to create the good or service
    Time Utility – The utility that is found in offering a good or service to consumers at the right time
    Place Utility – Refers to offering a good or service in the right place for consumers’ easy accessibility
    Possession Utility – The satisfaction a consumer gains from owning a certain product/good.
    What is an ordinal utility economics example? Ordinal utility is a relative measure of utility. It describes how one can determine the value of a good or service by comparing it to another. This measurement only captures which good or service is better, not how much better it is. Customers might assign value to goods or services according to ordinal utility. For example, a man asks his friend which one of two local barbershops is better. His friend tells him barber B is better because his skills are more refined. This is a relative measure as one can’t quantitatively measure how much better the one barber cuts hair compared to the other.
    What is a cardinal utility economics example? Cardinal utility is a quantitative approach to measuring utility. It presents the utility of something as a fixed number – it’s an exact measure of utility. An individual can rank goods or services according to their cardinal utility by comparing the utility numbers derived from the goods or services. For example, a bunch of 20 bananas can be said to have a cardinal utility of 20, whereas a bunch of 10 only has a utility value of 10.
    3. .The demand for labor is an economics principle derived from the demand for a firm’s output. That is, if demand for a firm’s output increases, the firm will demand more labor, thus hiring more staff.

  134. Avatar Anthony Phoebe says:

    Name: Anthony Phoebe.
    Registration number: 2021/247111.
    Email address: anthonyphoebe7@gmail.com.

    (1) Utility refers to the ability of goods and services to satisfy unlimited human wants. It can also be viewed as satisfaction, pleasure or fulfillment an individual derives from the consumption of goods and services.Goods are desired because of their ability to satisfy human wants.
    When a consumer derives satisfaction from the consumption of a good or service, then, the good or service consumed possesses utility. This is relative to the consumer depending on time, place, form and possession.

    Types of utility
    i. Time utility
    ii. Form utility
    iii.Place utility
    iv. Possession utility

    Time utility is the amount of satisfaction derived from the consumption of goods and services at a particular time. For example, Cold pure water will be sold more during the heat period than the cold period.

    Form utility is the transformation of goods and services from one form to another to confer satisfaction when consumed. For example, the dry corn seeds can not be eaten that way except when processed or ground into corn flour and cooked for consumption.

    Place utility is the ability of goods and services to satisfy a need within a location and it’s a function of distribution channels and the physical locations at which goods and services are sold. For example, a shop selling building materials has no satisfaction in a citadel of learning or school environment but will satisfy a need if found in a constructive site.

    Possession utility:
    This is the satisfaction derived from the ownership of goods and services
    For example, a woman who owns a ceramic plate derives satisfaction in using it than when it’s been burrowed.

    (2)
    The cardinal school of thought:
    i Total utility depends on the consumption of goods and services
    ii Money income of the consumer is held constant
    iii There’s diminishing marginal utility
    iv The consumer is rational
    v Utility is measurable.
    Explanations of the points listed above:
    i. Total utility is the aggregate of satisfaction that a consumer derives from the consumption of any particular good or service. It’s the sum up of the consumption made by an individual.
    ii. This implies that each additional unit of money provides the consumer with the same level of satisfaction.
    iii. Marginal utility diminishes with an increase in total utility.Marginal utility reduces with the consumption of each additional unit.
    iv. The consumer makes his choices after considering all the other alternative goods (and services) available in the market .
    v. The measurement of usefulness that a consumer obtains from any good. A utility is a measure of how much one enjoys a favourite food, or other goods.

    While Ordinal school of thought focuses on the satisfaction a consumer can get from their scale of preference ranked in order.

    So,Cardinal Utility is a utility that determines the satisfaction of a commodity used by an individual and can be supported with a numeric value. On the other hand, Ordinal Utility defines that satisfaction of user goods can be ranked in order of preference but cannot be evaluated numerically.

    (3)The demand for labour determines the wage or price paid for labour.
    An increase in the price of say, egg leads to an increase in workers or the hiring of workers for more production of eggs. This causes the demand curve to shift to the right and vice versa. The demand curve reflects the value of marginal product of labour. Increase in price of egg will increase the marginal product of labour. With higher price of egg, the marginal output from an extra worker in the production of eggs, make the production more valuable than before.

  135. Avatar Nze Chioma Gift :P.A.L.G (2021/243724) says:

    1)Utility theory is based on the fact that satisfaction which consumers derived from consumption of goods and services can be measured quantitatively (in util).
    2a)Cardinal school of thoughts : This approach emphasizes that utility is measurable.That is, after consuming a given quantity of a commodity, the consumer can simply evaluate his satisfaction through the use of figures which ranges from zero to infinity.
    The consumers measures the utility which they are deriving from a commodity in cardinal numbers to compare them with the price of the commodity so that they can decide rationally whether to buy the commodity or not.
    2b)Ordinal utility is a function representing the preference of an agent on an ordinal scale.it claims that it is only useful to ask which option is better than the other but it is meaningless to ask how much better it is or how good it is.
    3)The demand for labour is an economic principle derived from the demand for a firm’s output
    Demand for labour is a concept that describes the amount of demand for labour that an economy of firm is willing to employ at a given point in time.
    This demand may not necessarily be in long run equilibrium.It is determined by the real wage firms are willing to pay for this labour and the number of workers willing to supply labour at that wage.

  136. Avatar Adama mmaduabuchi Kingsley says:

    The elementary theory of utility
    a) The concept of utility theory: Utility theory is based on the fact that satisfaction which consumers derived from consumption of goods and services can be measured quantitative.
    b) meaning of utility:economics, utility is a term used to determine the worth or value of a good or service. More specifically, utility is the total satisfaction or benefit derived from consuming a good or service. Economic theories based on rational choice usually assume that consumers will strive to maximize their utility.
    Utility, in economics, refers to the usefulness or enjoyment a consumer can get from a service or good.
    c) Total utility: Total utility is the aggregate amount of satisfaction or fulfillment that a consumer receives through the consumption of a specific good or service. Total utility helps economists understand the demand for goods and service
    d) Average utility: Average utility refers to the utility that is obtained by the consumer per unit of commodity consumed. It is calculated by dividing the total utility by the number of units consumed.
    e) Marginal utility: Marginal utility (MU) is defined as the additional (cardinal) utility gained from the consumption of one additional unit of a good or service or the additional (ordinal) use that a person has for an additional unit.
    Using the same example, if the economic utility of the first slice of pizza is ten utils and the utility of the second slice is eight utils, the MU of eating the second slice is eight utils. If the utility of a third slice is two utils, the MU of eating that third slice is two utils.
    f) Law of diminishing marginal utility:The law of diminishing marginal utility states that all else equal, as consumption increases, the marginal utility derived from each additional unit declines.The marginal utility can decline into negative utility, as it may become entirely unfavorable to consume another unit of any product.
    g) Utility maximization and derivation of demand curve: Utility maximization refers to the concept that an individual gets a high level of satisfaction with the purchase of the good. When utility is maximized, there is no incentive to alter the expenditure unless there is a change in taste, income, or price. In other words, the marginal utility spent per dollar on each product or commodity is equalized. That is, consumers compare the extra utility from each production with the cost.The demand curve is a visual representation of how many goods are bought at each possible price. It is used to model the price-quantity relationship.
    h) Derivation of demand curve from the utility theory: Dr. Alfred Marshall derived the demand curve with the aid of law of diminishing marginal utility. The law of diminishing marginal utility states that as the consumer purchases more and more units of a commodity, he gets less and less utility from the successive units of the expenditure.
    :
    2) Mention and discuss the different view of utility according to the two schools of thoughts:
    There are basically two schools of thought in the analysis of utility and they are as follows:
    1. Cardinal school of thought

    2. Ordinal school of thought.

    CARDINAL SCHOOL OF THOUGHT: This approach emphasizes that utility is measurable. That is, after consuming a given quantity of a commodity the consumer can simply evaluate his satisfaction through the use of figures which range from zero to infinite. Assumption of cardinal approach includes
    i. Utility is measurable
    ii. The consumer is rational

    iii. There is diminishing marginal utility

    iv. Total utility (TU) depends on the quantity consumed.

    v. Money income of the consumer is held constant
    b) ordinal school of thoughts:Definition: The Ordinal Utility approach is based on the fact that the utility of a commodity cannot be measured in absolute quantity, but however, it will be possible for a consumer to tell subjectively whether the commodity derives more or less or equal satisfaction when compared to another.

    3) Explain the demand for and pricing of productive factors emphasizing on the labour market: The firm’s demand for labor. The firm’s demand for labor is a derived demand; it is derived from the demand for the firm’s output. If demand for the firm’s output increases, the firm will demand more labor and will hire more workers. If demand for the firm’s output falls, the firm will demand less labor and will reduce its work force.The labor market comprises four components: the labor force population, applicant population, applicant pool, and the individuals selected.
    a) The labour force, or currently active population, comprises all persons who fulfil the requirements for inclusion among the employed (civilian employment plus the armed forces) or the unemploye
    b) applicant population: The second component is the applicant population which refers to the people who are applying for a particular job that suits their expertise and skills. Recruiters look first at the labor market and then look next for individuals who meet the skills and qualifications set for a particular job.
    c) Applicant pool: An applicant pool consists of all the applicants who are applying for a particular position. The size of an applicant pool can vary depending on the job description, the amount of experience required, the intensiveness of the application process, the competitiveness of the compensation offered, and the avenues through which the job is advertised to potential candidates.
    d) The individual selected:
    The fourth component is the individuals selected, which simply means the individual or individuals who’ve made it through the screening process and have been hired for the job. Of course, this is judged based on a number of factors, and the person is screened against a carefully determined set of qualifications.

  137. Avatar Nnamdi victory onyinyechi says:

    Name:Nnamdi victory onyinyechi
    Department: public administration and local government
    Faculty: social science
    Reg no: 2021/ 243736
    Briefly explain the elementary theory of utility
    be unique please
    The elementary theory of utility is a theory of consumer behavior that explains how individuals make choices between different goods or services based on their preferences and the level of satisfaction or happiness, known as utility, that they derive from each option.

    According to this theory, individuals aim to maximize their total utility, which is the sum of the utilities of all the goods and services they consume. Utility is a subjective measure, meaning that it varies from person to person, and it cannot be directly observed or measured.

    The elementary theory of utility assumes that individuals have rational preferences and make choices based on their marginal utility, which is the additional utility gained from consuming an additional unit of a good or service. As individuals consume more units of a good, the marginal utility typically decreases, reflecting the law of diminishing marginal utility.

    To maximize their utility, individuals allocate their limited resources, such as income or time, across different goods and services based on their marginal utilities and prices. The theory predicts that consumers will choose the combination of goods and services that gives them the highest level of utility, subject to their budget constraint.

    Overall, the elementary theory of utility provides a framework for understanding how individuals make choices and allocate resources to maximize their well-being, and it forms the basis for many models of consumer behavior in economics.

    Mention and discuss the different views of utility according to the two school of thought which you have been taught

    The two schools of thought regarding utility are the cardinal and ordinal schools. The cardinal school of thought views utility as a measurable and quantifiable entity, whereas the ordinal school views utility as an ordinal ranking of preferences.

    The cardinal school of thought assumes that utility is a measurable and quantifiable entity, which means that it can be assigned a numerical value. This school of thought suggests that consumers have a cardinal utility function that assigns numerical values to different levels of satisfaction or happiness derived from consuming goods and services. According to this school of thought, utility can be compared between individuals, allowing for the measurement of aggregate welfare in society.

    On the other hand, the ordinal school of thought suggests that utility is an ordinal ranking of preferences rather than a measurable quantity. This school of thought assumes that individuals can only rank their preferences in order of preference, but not assign a numerical value to their level of satisfaction or happiness. According to this school of thought, utility can only be compared within an individual and not between individuals.

    The ordinal school of thought is more widely accepted in modern economics, as it is more in line with the idea of subjective well-being and the inability to directly measure the level of satisfaction or happiness derived from consuming goods and services. However, the cardinal school of thought has also had some impact on economics, particularly in the development of theories of consumer behavior and welfare economics.

    Overall, while there are differences in the views of utility between the cardinal and ordinal schools of thought, both recognize the importance of understanding individual preferences and behavior to analyze consumer choices and aggregate welfare in society

    Explain the demand for and pricing of productive factors emphasizing on the labour market

    The demand for productive factors, such as labor, is driven by the marginal productivity of each factor. In the case of the labor market, this means that employers will demand labor up to the point where the marginal revenue product (MRP) of labor equals its wage rate.
    The MRP of labor is the additional revenue that a firm can earn from hiring one more unit of labor, while holding other inputs constant. It is determined by the productivity of labor and the price of the final product. If the MRP of labor is greater than the wage rate, the firm will hire more labor, as the additional revenue generated by the labor is greater than the cost of hiring it. Conversely, if the MRP of labor is less than the wage rate, the firm will reduce its demand for labor.
    In addition to the MRP of labor, the demand for labor is also influenced by other factors, such as the availability of substitutes for labor, technological changes, and the elasticity of demand for the final product.
    The pricing of productive factors, including labor, is determined by the intersection of the demand and supply curves. In the labor market, the supply of labor is determined by the willingness of workers to work at different wage rates. The supply curve of labor is upward sloping, as workers are willing to supply more labor at higher wage rates.
    The equilibrium wage rate in the labor market is determined by the intersection of the demand and supply curves for labor. If the demand for labor increases, the equilibrium wage rate will increase, and vice versa. Similarly, if the supply of labor increases, the equilibrium wage rate will decrease, and vice versa.
    Overall, the demand for and pricing of productive factors, particularly labor, is determined by the marginal productivity of each factor and the intersection of the demand and supply curves. These factors play a crucial role in the functioning of markets and the allocation of resources in the economy

  138. Avatar Name: Nnacho Cynthia chidera Reg no: 2021/243718 department of public administration and local government course code : Eco 101: says:

    1 utility is a term use to determine the worth or value of a good or service more specifically, utility is the satisfaction or benefits derived from consuming a good or services.
    Utility theory bases it’s believe upon individuals preference.it is a theory postulated I’m economics to explain behavior of individuals based on the premise people can consistently rank order their choices depending upon their preference. We can this state that individuals preference are intrisian any theory which proposes to get preferences is by necessity abstraction based on certain assumption. Utility theory is a positive theory that seeks to explain the individual observe behavior and choice, the difference between normative and positive aspect of a theory is very important in the discipline of economics. Some scholars argue that economics theories should be normative meaning that they should be prescriptive and tell people what to do.while some argue often successfully that economic theories are designed to explanation of observed behavior of agent in market vice positive in that aspect.
    Under the assumption of utility theory, we can assume that people bahaved as if they had a utility function and acted according to it therefore, the fact that a person does not know his or her utility function or even denied it’s existence does not contradict the theory. Economics have used experiment to decipher individuals utility function and behavior that that lies individuals utility.
    Individual faces a set of consumption bundles, so we assume that to have a clear preference that enable them to ‘rank order’ all bundle based on desirability that is the level of satisfaction each bundle shall provide to each individual. It ranks ordering based on preference tells as the theory itself has ordinal and cardinal utility
    ASSUMPTION OF UTILITY THEORY
    1COMPLETENESS: Individuals can have rank order all possible bundles, ranking ordering shows that the theory assume that no matter how many combination of consumption bundle are placed in front of individuals, Each individual can rank them in some order based on the preference this means that the individual can compare any bundle with any other bundle rank them in order of the satisfaction each bundle provide. Mathematically this property where in an individuals preference enable him or her to compare any given bundle with any other bundle is called the completeness proprty of preference
    3 MIX IS BETTER: we assume that the individual is indifference to the choice between one week of clothing Alone and one week of food thus choice itself is not preferred over the other.
    The mix better assumption about preference says that a mix of two say half
    4 RATIONALITY: this is the most important assumption that lays down all of utility theory. Under the assumption of rationality individuals preference avoid any kind of circularity.
    Utility theories argues that each person give a list of options can rank those options in a precise order of preference, Each person have difference choice. In economics utility theory governs individuals decision making.
    2 THE DIFFERENT VIEW OF UTILITY ACCORDING TO THE TWO SCHOOLS OF TAUGHT
    A The ordinal utility
    B The cardinal utility
    ORDINAL UTILITY: refers to the satisfaction level after consuming any good or services cannot be scaled in numbers. However these things can be arranged in order of preference. Utility is ranked based on satisfaction, it is more practical and sensible. Whereas, these things can be arranged in order of preference. Two English economist John Hick and R.J Allen 1930 argued that the consumer behavior theory be introduced based on ordinal utility. According to the ordinal approach utility is a psychological phenomenon like happiness, welfare, and satisfaction. The ordinal theory is highly subjective and differs across individual therefore it cannot be measured in quantifiable terms the function that represents utility of a products according to it’s preference but does not provide any numerical figure is know as an ordinal utility
    A consumer preference can be demonstrated graphically through indifference curves. It becomes easy when there are two types of commodities (xy) when (x1,y1) and (x2,y2). That’s on the same curve line and ( x1,y1)
    This is an example of indifference curve map where the preference of goods are shown but not their quantity. The utility according to this approach can be measured in relative terms such as less than and greater than.this approach states that consume behavior can be explained in terms of preference on ranking. Utility can be ranked qualitatively rather than quantitatively
    CARDINAL UTILITY
    According to this concept, the utility can be expressed similarly to how weight and height are expressed, however the economics lacked a precise unit for utility, Hence the derived a psychological unit termed as util
    Until is not regarded as a standard unit because it varies from person to person place to place
    APPLICATION OF CARDINAL UTILITY
    Welfare Economics
    Marginalism
    Expected utility theory
    Intertemporal utility
    3 Demand for and pricing of productive factors emphasizing on the labour.
    What is Demand for Labor
    When producing goods and services, businesses require labor and capital as inputs to their production process. The demand for labor is an economics principle derived from the demand for a firm’s output. That is, if demand for a firm’s output increases, the firm will demand more labor, thus hiring more staff. And if demand for the firm’s output of goods and services decreases, in turn, it will require less labor and its demand for labor will fall, and less staff will be retained.

    Labor market factors drive the supply and demand for labor. Those seeking employment will supply their labor in exchange for wages. Businesses demanding labor from workers will pay for their time and skills.

  139. Avatar Ohabuenyi Jennifer Amarachukwu says:

    Name: Ohabuenyi Jennifer Amarachukwu
    Department: public administration and local government
    Faculty: social science
    Reg no: 10778201FG
    1) The basic theory of utility is a concept in economics that describes how people make decisions based on their preferences and the options available. It makes the assumption that people have logical preferences and aim to get the most “utility” out of the products and services they use.
    A subjective indicator of happiness or satisfaction derived from consuming goods and services is utility. According to the theory, people choose according to the marginal utility they receive from each additional unit of a good or service.People will therefore consume more of a good or service so long as its marginal utility is higher than or equal to its price for the most recent unit.
    In the theory of utility, the idea of diminishing marginal utility is also introduced, which contends that as a person consumes more of a good or service, the additional satisfaction or utility they obtain from each new unit declines. As people consume more of a good or service, they are less ready to pay for further units of that commodity or service.
    2)In the study of utility, there are primarily two schools of thought, which are as follows:
    the fundamental school of philosophy
    This method emphasises that utility may be measured. That is, after consuming a certain amount of a good, the customer can easily assess his level of satisfaction by using numbers that run from 0 to infinity. Classical economics Goossen (Germany), William Stanley nevins (England), Leon Walras (France), and Karlmenger proposed the cardinal utility theory or approach (Australia).According to the ordinal school of thought, although the satisfaction experienced after eating a good or service cannot be quantified, it can be organised according to personal taste. Two English economists, John Hicks and R.J. Allen, argued that ordinal utility should serve as the foundation for the theory of consumer behaviour in the 1930s.
    3)In economics, the demand for and pricing of productive factors, including labor, are determined by the forces of supply and demand in the market.
    The demand for labor refers to the quantity of labor that employers are willing and able to hire at a given wage rate. This demand is determined by the marginal productivity of labor, which is the additional output that is produced when an additional unit of labor is added to the production process. As long as the marginal productivity of labor is higher than the wage rate, employers will continue to hire more workers.
    The supply of labor refers to the quantity of labor that workers are willing and able to provide at a given wage rate. This supply is determined by various factors, including the availability of other job opportunities, the level of education and training of workers, and the preferences of workers for leisure time versus work.
    The equilibrium wage rate in the labor market is determined by the intersection of the demand for and supply of labor. If the demand for labor is greater than the supply of labor, the wage rate will increase until the two are equalized. Conversely, if the supply of labor is greater than the demand for labor, the wage rate will decrease until the two are equalized.
    In addition to the wage rate, employers may offer non-wage benefits to attract and retain workers, such as health insurance, retirement benefits, and paid time off. These non-wage benefits are also subject to the forces of supply and demand in the labor market.Overall, the demand for and pricing of productive factors, including labor, are determined by the interplay of supply and demand in the market, with the equilibrium wage rate being the level at which the demand for and supply of labor are equalized.

  140. Avatar EZEMA ONYINYECHI QUEEN says:

    NAME: EZEMA ONYINYECHI QUEEN
    REG NO: 2020/246167

    1) Briefly discuss the elementary theory of utility.
    2) Mention and discuss the different views of utility according to the two schools of thoughts which you have been taught.
    3) Explain the demand for and pricing of productive factors emphasizing on the labour market.
    ANSWER
    1, Utility is the amount of satisfaction that a consumer derives from the consumption of goods and services.
    2a, Cardinal school of thought : this school of thought emphasizes that utility is measurable, this means that the quantity of goods or services that satisfies the need of a consumer can be evaluated through the use of figure ranging from zero to infinity.
    2b, Ordinal school of thought: the ordinal approach of utility requires that consumers make a scale of preference, by choosing between the various commodities that gives one the same level of satisfaction.
    3, The modern theory of pricing of factors of production gives a satisfactory answer to the problem of determining factor price, according to the theory, just as the price of a commodity is determined by the forces of demand and supply, the price of a factor of production is also determined by the demand for that factor and supply.

  141. Avatar OGBUKE KENECHUKWU JESSICA 2020/246821 says:

    Ogbuke Kenechukwu Jessica
    2020/246821
    Nursing

    1. In economics, utility theory governs individual decision making. The student must understand an intuitive explanation for the assumptions: completeness, monotonicity, mix-is-better, and rationality (also called transitivity).
    Utility theory bases its beliefs upon individuals’ preferences. It is a theory postulated in economics to explain behavior of individuals based on the premise people can consistently rank order their choices depending upon their preferences. Each individual will show different preferences, which appear to be hard-wired within each individual. We can thus state that individuals’ preferences are intrinsic. Any theory, which proposes to capture preferences, is, by necessity, abstraction based on certain assumptions. Utility theory is a positive theory that seeks to explain the individuals’ observed behavior and choices.The distinction between normative and positive aspects of a theory is very important in the discipline of economics. Some people argue that economic theories should be normative, which means they should be prescriptive and tell people what to do. Others argue, often successfully, that economic theories are designed to be explanations of observed behavior of agents in the market, hence positive in that sense. This contrasts with a normative theory, one that dictates that people should behave in the manner prescribed by it. Instead, it is only since the theory itself is positive, after observing the choices that individuals make, we can draw inferences about their preferences. When we place certain restrictions on those preferences, we can represent them analytically using a utility function—a mathematical formulation that ranks the preferences of the individual in terms of satisfaction different consumption bundles provide. Thus, under the assumptions of utility theory, we can assume that people behaved as if they had a utility function and acted according to it. Therefore, the fact that a person does not know his/her utility function, or even denies its existence, does not contradict the theory. Economists have used experiments to decipher individuals’ utility functions and the behavior that underlies individuals’ utility.

    2.Ordinal Utility
    Early economists of the Spanish Scholastic tradition of the 1300s and 1400s described the economic value of goods as deriving directly from this property of usefulness and based their theories on prices and monetary exchanges.
    This conception of utility was not quantified, but a qualitative property of an economic good.
    Later economists, particularly those of the Austrian School, developed this idea into an ordinal theory of utility, or the idea that individuals could order or rank the usefulness of various discrete units of economic goods
    Cardinal Utility
    To Bernoulli and other economists, utility is modeled as a quantifiable or cardinal property of the economic goods that a person consumes.
    To help with this quantitative measurement of satisfaction, economists assume a unit known as a “util” to represent the amount of psychological satisfaction a specific good or service generates for a subset of people in various situations.
    The concept of a measurable util makes it possible to treat economic theory and relationships using mathematical symbols and calculations.
    Total Utility
    If utility in economics is cardinal and measurable, the total utility (TU) is defined as the sum of the satisfaction that a person can receive from the consumption of all units of a specific product or service.
    Using the example above, if a person can only consume three slices of pizza and the first slice of pizza consumed yields ten utils, the second slice of pizza consumed yields eight utils, and the third slice yields two utils, the total utility of pizza would be twenty utils.

    3.The demand for labor is an economics principle derived from the demand for a firm’s output. That is, if demand for a firm’s output increases, the firm will demand more labor, thus hiring more staff. And if demand for the firm’s output of goods and services decreases, in turn, it will require less labor and its demand for labor will fall, and less staff will be retained.

    Labor market factors drive the supply and demand for labor. Those seeking employment will supply their labor in exchange for wages. Businesses demanding labor from workers will pay for their time and skills.
    Changes in the marginal productivity of labor, such as technological advances brought on by computers
    Changes in the prices of other factors of production, including shifts in the relative prices of labor and capital stock
    Changes in the price of an entity’s output, usually from an entity charging more for their product or service

  142. Avatar Asogwa ThankGod Oluchi says:

    Name: Asogwa ThankGod Oluchi
    Reg no: 10498980CH
    Dept: Public administration
    Faculty: Social sciences

    The first is utility theory. Assuming that people can consistently rank order their desires, this hypothesis was put forth in economics to explain how people behave. The foundation of utility theory is the capacity to express in numerical terms the satisfaction that consumers derive from using goods and services. The four primary types of utility are form utility, location utility, time utility, and possession utility. These utilities have an impact on an individual’s purchasing decision.
    (2) There are essentially two schools of thought that can be used to the analysis of utility, and they are as follows:
    Utility can be measured, according to the fundamental school of thought.

    This means that, after consuming a specific quantity of a good, the client can readily gauge how satisfied he is by utilising numbers that range from 0 to infinity. The cardinal utility technique was developed by classical economics. England’s William Stanley Nevins, France’s Leon Walras, Germany’s Goossen, and Germany’s Karlmenger (Australia).
    The ordinal school of thinking contends that although the satisfaction felt after consuming a good or service cannot be measured, it may be arranged in accordance with individual preferences.

    In the 1930s, John Hicks and R.J. Allen, two English economists, argued that the theory of consumer behaviour should be built upon ordinal utility.

    (3) Business production processes use labour and capital as inputs to create goods and services. The demand for labour is a concept in economics that is derived from the demand for a firm’s product. In other words, a corporation will require more labour market and recruit more workers if there is a higher demand for its output.Also, if the demand for the firm’s products and services declines, it will need less labour, have a reduced demand for labour, and retain fewer workers.
    The labour market’s dynamics affect both the supply and demand for labour. People in need will perform labour in return for cash. Companies that require labour from their employees will pay them for their time and knowledge.

  143. Avatar Eze ifeoma Ruth, Reg number 10980982JH, Department: public administration and local government, course code Eco 101 says:

    Question 1
    Utility theory is based on the fact that the satisfaction which consumers derived from consumption of goods and services can be measured quantitatively. Utility is the satisfaction you derive from consuming a particular want.it is assumed that utility can be measured, the three forms of utility are total utility, Average utility and marginal utility.
    Question 2
    The two schools of thoughts that we have been taught are cardinal and ordinal school of thought.cardinal school said that utility can be measured cardinal number tell ‘how many’ of something, they show quantity. Cardinal can be measured in utils ranging from zero to infinite.cardinal utility provides a value of utility to different alternatives .in order words it enables consumer to ranic the magnitude of how much they prefer one goods over another.
    Ordinal utility states that the satisfaction a consumer gets after consuming a goods or service cannot be scaled in number or measured whereas there things can be ranked.this theory affirms that it is relevant to ask which item is better as compared to others instead of how good is that product. For example a BMW car is favoured more than a Toyota car, but it cannot be determined by what percentage. Apart from showing a mathematical function,a consumers preference can be demonstrated graphically through in difference curve.ordinals be states that consumers behavior can be explained in terms of preferences or rankings
    Question 3
    The pricing of productive factors “and labour market” …. when we say productive factors we mean the factors of production (labour, land, capital, entrepreneur). The factor pricing refered the entrepreneur pays for availing this factors of production. How does this affect the labour market? The labour market is where works interact with each other. The demand for labour describes the amount and market wage rate workers and employers settle upon any given moment. If the labour productivity increases, firms will demand more labour at each wage rate and firm’s demand for labour itself will increase.

  144. Avatar EZEAH GRACE OGECHUKWU says:

    Ezeah Grace Ogechukwu
    2021/241632
    gracescholastica@gmail.com

    1. Define Utility in Economics
    What does utility mean in economics? Utility theory in economics pertains to the value or worth of a certain
    good, service, or item. It suggests that goods, services, and items can be ranked according to their usefulness.
    The premise was initialy theorized by Swiss mathematician, Daniel Bernoulli, in the 18th century. Bernoulli
    founded the idea with regard to the differing values of things. With respect to theory, the utility of an item tends to
    be closely correlated to its price. An item such as gold, which is very useful and thus has great utility (combined
    with its scarcity), is very expensive. Total utility is closely tied to the bare concept of utility. Total utility points to
    the aggregate amount of usefulness and fruition there is to be gained from the use of a specific good, service, or
    other item. Furthermore, the abstract measurement of utility is another key concept of the theory. Although it’s
    hard to caculate the exact utility of something, vu economists use abstract measurements to capture the
    usefulness of things.

    CARDINAL SCHOOL OF THOUGHT: This approach emphasizes that utility is
    measurable. That is, after consuming a given quantity of a commodity the
    consumer can simply evaluate his satisfaction through the use of figures
    which range from zero to infinity. iv. Total utility (TU) depends on the quantity
    consumed.

    What is Demand for Labor
    When producing goods and services, businesses require labor and capital as inputs to their production process. The demand for labor is an economics principle derived from the demand for a firm’s output. That is, if demand for a firm’s output increases, the firm will demand more labor, thus hiring more staff. And if demand for the firm’s output of goods and services decreases, in turn, it will require less labor and its demand for labor will fall, and less staff will be retained.

    What isanOrdinalUtility?
    ordinal utility states that the satisfaction gets after consuming a good or service cannot be scaled in
    numbers, whereas, these things can be arranged in the order of preference.
    The demand for any factor of production, such as labor, physical capital or land is a derived demand because it arises not from the intrinsic utility provided by the factor but because of the value placed on the production it produces by consumers.

  145. Avatar Madumelu Kelly Chioma says:

    1.
    Utility is the amount of satisfaction derived from consuming gooods or services at a given time; it is the benefits or satisfaction which a person gets from the consumption of a good or service at a given time. Utility is the satisfaction level which a consumer received from buying or using a product it service at a given time. The utility theory explains choices and behaviours of individuals and measures their level of satisfaction from consuming a good or service.
    2. Cardinal school of thought:
    This is an approach which emphasizes or believes that utility can be measured and expressed in quantitative numbers. It assumes that a consumer can give actual figures(ranging from 0 to infinity) to evaluate his satisfaction. The utility is measured in UTILS. It is assumed to work with only one product which makes it less realistic or practical than ordinal school of thought. It follows marginal utility analysis. For example: If driving a Toyota Camry gives 1500 units of utility (1500 UTILS), a Range Rover Sport will give 4000 units of utility(4000 UTILS).
    II) Ordinal school of thought:
    This approach or school of thought believes that utility can only be ranked and not measured. It states that utility or satisfaction cannot be measured in exact numbers. It can work with more than one product. It is a relative or qualitative approach to the measurement of utility.It uses indifference curve analysis. For example: Suppose a consumer prefers doughnut to bread and bread to cake. Hence the consumer can tell his preferences to be doughnut>bread>cake.
    3.
    The demand for any factor of production is a derived demand. A firm cannot make profit unless there is a demand for its output. The quantity of output that a firm produces this depends on the value placed by the market on the firm’s product i.e the demand for any factor of production depends on the demand for the output it is used to produce.
    A profit maximizing firm hires the quantity of factors that makes the value of marginal product (VMP) of the factor equal to the marginal cost if the factor. For a firm that buys its factors of production in competitive factor markets , the marginal cost of a factor is the factor’s price as the firms in the competitive markets are price takers. The firm has simply to take the price as given and pay the ongoing price.
    Labour ,as a factor of production, has a market wage rate, interest rate for capital,rent for land. This a profit maximizing firm hires each factor up to the point at which the value of marginal product equals its price. The supply and demand for labour determine the wage or price paid for labour services. For example: A firm hires 1 worker,the worker will produce 100 tubers of yam. If it hires 2 workers both of them will produce 180 tubers if yam per month. Therefore the MP of the second worker is 80. The competitive firms are price takers in both the output and input market, so that with a given price the value of marginal product (like the marginal product itself) declines as the number of workers increases. An increase in the price of yam will increase the MP of labour. That is with higher price,the added output from an extra worker is more valuable than before. An increase in the demand for labour will cause the demand curve to shift to the right.
    Land ,which is also a factor of production, is strictly fixed in supply and its price is demand determined- that is the price is determined by what households and firms are willing to pay for it. The return to any factor of production in fixed supply is called a pure rent.
    Another factor if production is capital. Income that is earned on savings that have been put to use through financial markets is called capital income. Interest or interest payment is the most important form of capital income; it us the price of capital. Interest is paid by the borrower to the lender. As I explained previously in other factors of production, the same method applies to capital. Its demand depends on the value of marginal product of capital.

    MADUMELU KELLY CHIOMA
    2021/243011

  146. Avatar IKEH FAVOUR MMESOMA says:

    Name: IKEH FAVOUR MMESOMA
    Reg No: 2021/242466
    Email: favourmmesoma155@gmail.com

    1. Utility theory is based on the fact that satisfactions consumers derive from consumption of goods and services can be measured quantitatively

    Utility may be defined as the satisfaction received from consuming a good or service at any particular time. The economic utility of a good and service is important to understand, because it directly influences demand, and therefore the price of that good or service.
    Utility can be said to be relative to consumer and the variations among the individuals or consumers depend on time, place and form.

    2. *Cardinal Utility school of thought*
    It explains that the satisfaction level after consuming any goods or services can be scaled in terms of countable numbers.
    It is less practical
    Utility is measured based on utils
    Prof Marshall applied the theory

    *Ordinal utility school of thought*
    satisfaction level after consuming any goods or services can be scaled in terms of countable numbers. It explains that the satisfaction level after consuming any goods or services cannot be scaled in numbers. However, these things can be arranged in the order of preference.
    It is more sensible and practical
    Utility is ranked based on satisfaction
    Prof J.R Hicks applied this theory

    3. Demand for labour illustrates the amount of labour a firm is willing to employ at a particular wage rate. However, the determination of equilibrium in the labour market will also depend on the supply of labour.

    Equilibrium in the labour market depends on the wage rate firms are willing to pay and the amount of labour willing to provide the necessary work.

    Factor pricing is associated with the prices that an entrepreneur pays to avail the services rendered by the factors of production. For example, an entrepreneur needs to pay wages to labor, rents for availing land, and interests for capital so that he/she can earn maximum profit.
    An increase in physical productivity causes a corresponding increase in the value of labor, which raises wages.

  147. Avatar Nzekwe Chidera Emmanuel. says:

    Name : Nzekwe chidera Emmanuel
    Department: public administration and local government
    Faculty: social science
    Reg no :2021/246888
    1) A fundamental idea in economics, the simple theory of utility aims to explain how people make decisions based on their preferences and restrictions. According to the theory, people choose based on how satisfied or useful they feel overall and weigh the perceived advantages and disadvantages of numerous options. The theory also presupposes that people’s marginal utility is diminishing, which means that the more of a specific commodity or service they consume, the less additional utility they get from each subsequent unit.

    2) In the study of utility, there are primarily two schools of thought, which are as follows:
    The fundamental school of thought emphasises that utility is quantifiable. That is, after consuming a certain amount of a good, the customer can easily assess his level of satisfaction by using numbers that run from 0 to infinity. Classical economists put out the *cardinal utility theory or method. While ordinal,according to the ordinal school of thought, although the satisfaction experienced after eating a good or service cannot be quantified, it can be organised according to personal taste. Two English economists, John Hicks and R.J. Allen, argued that ordinal utility should serve as the foundation for the theory of consumer behaviour in the 1930s.
    In general, the method used to measure usefulness differs between the ordinal and cardinal schools of thinking. Whereas the neoclassical school holds that utility is subjective and can only be rated using ordinal utility, the classical school holds that utility can be measured in absolute terms using cardinal utility.

    3) The combination of supply and demand in the market determines the demand for and pricing of productive components, including labour. The marginal revenue product (MRP) of labour, or the extra income made by hiring an additional unit of work, is what drives the labour market’s demand for labour. The amount of people who are ready and able to work for a specific wage rate determines the labour supply. Wages will fluctuate up until the market is balanced, which occurs when the supply and demand of labour are equal. In addition, the cost of other production components like capital and land is influenced by supply and demand in the market where each of these products is sold.

  148. Avatar Ezugwu Jacinta chidiebere says:

    Name: Ezugwu Jacinta chidiebere
    Course:Eco 101
    Faculty: Social sciences
    Department: Public administration and local government
    Matric number:2021/241172
    1.The elementary theory of utility is a fundamental concept in microeconomics that seeks to explain how individuals make decisions when faced with scarcity. The theory proposes that individuals make choices based on their preferences, which are defined in terms of utility.
    Utility is the satisfaction or happiness that an individual derives from consuming a particular good or service. The theory of utility assumes that individuals are rational and seek to maximize their utility by making choices that will give them the highest possible level of satisfaction.
    The concept of utility is often represented mathematically as a utility function, which measures the level of satisfaction that an individual receives from consuming different goods and services. A utility function can be represented as follows:
    U(x1, x2, …, xn)
    Where U is the utility function, and x1, x2, …, xn represent the quantities of different goods or services that an individual consumes.
    The theory of utility proposes that individuals face budget constraints, which limit their ability to consume all the goods and services that they desire. Therefore, individuals must choose how to allocate their resources to maximize their utility within their budget constraints.
    The theory of utility also proposes the concept of marginal utility, which refers to the additional satisfaction that an individual derives from consuming one additional unit of a good or service. Marginal utility is typically assumed to decrease as consumption increases, reflecting the idea that additional units of a good or service provide diminishing levels of satisfaction.
    In summary, the elementary theory of utility proposes that individuals make choices based on their preferences and seek to maximize their utility by allocating their resources to consume goods and services that provide them with the highest level of satisfaction. The concept of utility is central to microeconomic analysis, and the theory of utility is a fundamental building block for understanding consumer behavior and decision making.

    2.The cardinal school of thought is a school of economic thought that developed in the late 19th century and early 20th century. It is also known as the “utility analysis” or “marginal utility” approach. This school of thought is based on the assumption that utility can be measured and that individuals can make meaningful comparisons between different levels of utility.
    The cardinal school of thought proposes that utility can be measured on a cardinal scale, which means that it is possible to assign numerical values to the level of satisfaction or happiness that individuals derive from consuming goods and services. This numerical representation of utility is known as utils. According to this school of thought, the total utility that an individual derives from consuming a particular good or service is the sum of the marginal utilities of each additional unit consumed.
    The cardinal school of thought also suggests that individuals can make meaningful comparisons between different levels of utility. For example, if an individual derives 10 utils from consuming a slice of pizza and 20 utils from consuming a burger, then the individual can reasonably conclude that the burger provides more satisfaction than the pizza.
    One of the main criticisms of the cardinal school of thought is that utility is not directly observable or measurable. This criticism is based on the idea that utility is a subjective experience that varies from person to person and cannot be objectively measured or compared. Another criticism is that the assumption of diminishing marginal utility, which is central to the cardinal school of thought, may not always hold true in real-world situations.
    Despite these criticisms, the cardinal school of thought has been influential in the development of microeconomics and has contributed to our understanding of consumer behavior and decision making. The concept of utility and the idea of diminishing marginal utility remain important components of modern microeconomic analysis.
    The ordinal school of thought is a school of economic thought that emerged in the early 20th century as a response to the criticisms of the cardinal school of thought. The ordinal school of thought proposes that utility is not measurable on a cardinal scale and that individuals can only make meaningful comparisons between different levels of utility in terms of their preference orderings.
    According to the ordinal school of thought, individuals can rank their preferences in terms of the goods and services they consume. For example, an individual may prefer pizza to burgers, and burgers to hot dogs. However, the ordinal school of thought does not assign numerical values to these preferences, but rather only considers the order of preference.
    The ordinal school of thought proposes the concept of indifference curves, which represent the different combinations of goods and services that an individual considers equally preferable. Indifference curves are typically drawn on a two-dimensional graph, where each axis represents a different good or service. The slope of an indifference curve represents the marginal rate of substitution, which is the rate at which an individual is willing to give up one good or service to obtain an additional unit of another good or service while remaining indifferent.
    The ordinal school of thought suggests that individuals make choices based on their preference orderings and their budget constraints. Individuals seek to maximize their satisfaction or happiness by consuming goods and services that are on their highest possible indifference curve within their budget constraints.
    One of the strengths of the ordinal school of thought is that it does not rely on the assumption of measurable utility, which is a significant criticism of the cardinal school of thought. However, a limitation of the ordinal school of thought is that it cannot explain why individuals have certain preference orderings, as it only considers the order of preferences and not the underlying reasons for those preferences.
    In conclusion, the ordinal school of thought proposes that utility is not measurable on a cardinal scale and that individuals can only make meaningful comparisons between different levels of utility in terms of their preference orderings. The concept of indifference curves and the marginal rate of substitution are central to the ordinal school of thought and provide a useful framework for understanding consumer behavior and decision making.

    3. The demand for productive factors, including labor, is a key determinant of pricing in the economy. The demand for labor is derived from the demand for the goods and services that labor produces. Firms hire labor because they expect to generate more revenue from the goods and services that labor produces than the cost of hiring that labor.
    The demand for labor is influenced by several factors, including the productivity of labor, the price of the output produced by labor, and the price of other factors of production, such as capital. If labor is highly productive, firms will be willing to pay a higher wage to attract that labor. Similarly, if the price of the output produced by labor is high, firms will be willing to pay more for labor to produce that output.
    The elasticity of demand for labor also plays a significant role in the pricing of labor. If the demand for labor is elastic, meaning that firms can substitute other factors of production for labor relatively easily, then the wage rate for labor will be lower. On the other hand, if the demand for labor is inelastic, meaning that firms cannot easily substitute other factors of production for labor, then the wage rate for labor will be higher.
    In a competitive labor market, wages are determined by the intersection of the supply and demand for labor. The supply of labor is influenced by several factors, including the size of the labor force, the level of education and skills of the labor force, and government policies that affect the mobility of labor.
    In a monopsony labor market, where there is only one buyer of labor, such as a single large employer in a small town, the employer has the ability to influence the wage rate by hiring less labor and paying a lower wage than in a competitive market. This is because workers have limited job opportunities, and the employer can exploit this market power to pay lower wages.
    In summary, the demand for labor is derived from the demand for goods and services that labor produces and is influenced by factors such as labor productivity, the price of output, and the price of other factors of production. The elasticity of demand for labor and the level of competition in the labor market also play significant roles in determining the wage rate. Understanding these factors is crucial for firms, policymakers, and workers to make informed decisions regarding labor pricing and market participation.

  149. Name:Omeke Judith Ebubechukwu
    Reg number: 2021/243691
    Course code:Eco 101
    Department:Economics

    1)Utility is the ability of goods or services to satisfy unlimited human wants .It can also be said to as a satisfaction,pleasure or fulfillment an individual derives from the consumption of goods and services.

    2)Two school of thought had different view of utility . There are:
    a)The cardinal school of thought
    b)The ordinal school of thought

    a)The cardinal Approach:This school emphasizes that utility is measurable.This means that the quantity of goods or services that satisfy the need of a consumer can be evaluated through the use of figures ranging from zero to infinity.
    b)The ordinal Approach :This ordinal approach of utility requires that consumers make scale of preference by choosing between the various commodities that gives one the same level of satisfaction.This approach assumes that utility can be ranked at various levels of consumption.

    3)The demand for labour is not demand for labour itself,but the demand for goods and services. When the demand for a particular products increase,the demand for the factor which produces those products would rise .The demand and price of a factor also depends upon the market price of the goods for the production of which the factor is used .

  150. Avatar JACOB FLORA CHIBUAKAEBEM Reg no : 10162804EG. Department: PUBLIC ADMINISTRATION AND LOCAL GOVERNMENT faculty : social sciences Level : 100 says:

    1) Briefly explain the elementary theory of utility

    The elementary theory of utility is a basic economic concept that attempts to explain how individuals make choices based on their preferences and constraints. According to this theory, individuals have a set of preferences over different goods and services, and they choose the combination of goods that provides them with the highest level of satisfaction or utility.

    This theory assumes that individuals are rational and make choices based on their subjective preferences. It also assumes that individuals face constraints, such as budget constraints, which limit their choices. In order to maximize their utility, individuals allocate their limited resources to the goods and services that provide them with the most satisfaction, given their budget constraint.

    The theory of utility is based on the concept of marginal utility, which is the additional satisfaction that an individual derives from consuming an additional unit of a good or service. According to this theory, individuals will continue to consume a good or service as long as its marginal utility is positive and will stop consuming it once its marginal utility becomes negative.

    Overall, the elementary theory of utility provides a basic framework for understanding how individuals make choices and allocate their resources in order to maximize their satisfaction or utility.

    2) Mention and discuss the different views of utility according to the two school of thoughts which you have been taught

    In economics, utility refers to the satisfaction or happiness that an individual derives from consuming a good or service. There are two main schools of thought when it comes to utility: the cardinal school of thought and the ordinal school of thought.

    The cardinal school of thought views utility as a measurable quantity that can be expressed in numerical terms, such as units of satisfaction or utils. According to this school of thought, utility is a cardinal concept that can be quantified and compared between individuals. The cardinal school of thought assumes that individuals can rank their preferences and can make precise comparisons between different goods and services.

    On the other hand, the ordinal school of thought views utility as an ordinal concept, which means that it can only be ranked in order of preference, but not measured in numerical terms. According to this school of thought, utility is a subjective concept that varies from person to person and cannot be quantified or compared precisely between individuals. The ordinal school of thought assumes that individuals can only make relative comparisons between different goods and services, but not precise measurements.

    Both schools of thought have their strengths and weaknesses. The cardinal school of thought provides a more precise measurement of utility, which can be useful in certain situations, such as calculating the optimal level of consumption for an individual. However, it also assumes that individuals have a perfect knowledge of their preferences and can make precise comparisons between different goods and services, which may not always be the case in reality.

    The ordinal school of thought, on the other hand, acknowledges the subjective nature of utility and provides a more realistic view of how individuals make choices. It recognizes that individuals may not have a perfect knowledge of their preferences and that different individuals may have different preferences, making precise comparisons difficult. However, the ordinal school of thought does not provide a precise measurement of utility, which can make it difficult to compare the welfare of different individuals or to calculate the optimal level of consumption.

    Overall, both schools of thought provide valuable insights into the concept of utility, and economists continue to debate which approach is more appropriate for different situations

    3) Explain the demand for and pricing of productive factors emphasizing on the labour market

    The demand for productive factors, such as labor, is derived from the demand for the goods and services that they produce. Firms demand labor in order to produce goods and services, which they can then sell to consumers. The pricing of productive factors, including labor, is determined by the forces of supply and demand in the market.

    In the labor market, the demand for labor is derived from the demand for the goods and services that the labor produces. Firms will hire labor up to the point where the marginal product of labor equals the wage rate. The marginal product of labor is the additional output that is produced by hiring one additional unit of labor, while the wage rate is the price of labor. As the wage rate increases, the marginal product of labor tends to decrease, as firms will find it less profitable to hire additional workers. This creates a downward sloping demand curve for labor.

    On the other hand, the supply of labor is determined by individuals who are willing and able to work. The supply of labor is positively related to the wage rate, as individuals will tend to supply more labor as the wage rate increases. This creates an upward sloping supply curve for labor.

    The intersection of the demand and supply curves in the labor market determines the equilibrium wage rate and level of employment. If the wage rate is above the equilibrium level, there will be a surplus of labor, as more individuals will be willing to work at the higher wage rate than firms are willing to hire. This will put downward pressure on the wage rate, until it reaches the equilibrium level. Conversely, if the wage rate is below the equilibrium level, there will be a shortage of labor, as more firms will be willing to hire at the lower wage rate than individuals are willing to work. This will put upward pressure on the wage rate, until it reaches the equilibrium level.

    In summary, the demand for labor in the labor market is derived from the demand for the goods and services that it produces. The pricing of labor, as with other productive factors, is determined by the forces of supply and demand in the market. The equilibrium wage rate and level of employment are determined by the intersection of the demand and supply curves for labor.

  151. Avatar Nwosa Chinasa Gloria says:

    Name:Nwosa Chinasa Gloria
    Faculty: Social sciences
    Reg No:2021/246376
    Department: Public administration

    Briefly discuss the elementary theory of utility

    The elementary theory of utility is a foundational concept in economics that seeks to explain how individuals make choices based on their preferences for different goods and services. At its core, the theory holds that individuals seek to maximize their utility, or the level of satisfaction or happiness they derive from consuming a given set of goods and services.

    Utility is typically measured in terms of “utils,” which represent units of satisfaction. According to the theory, individuals have preferences over different combinations of goods and services, and they make choices based on which combination will give them the highest level of utility.

    The theory also posits that individuals face budget constraints, which limit the amount of goods and services they can consume. This means that individuals must make choices about which goods and services to consume based on their prices and the amount of money they have available.

    One key insight of the elementary theory of utility is that individuals’ preferences are subjective and can vary widely from person to person. This means that different individuals may have different utility functions, and may therefore make different choices even when faced with the same set of options.

    Overall, the elementary theory of utility provides a framework for understanding how individuals make choices based on their preferences and budget constraints, and how these choices ultimately determine their levels of satisfaction and well-being

    2) Mention and discuss the different views of utility according to the two schools of thought which you have been taught

    The two schools of thought regarding utility are the cardinal school and the ordinal school. The cardinal school views utility as something that can be measured numerically, while the ordinal school rejects the notion of measurable utility and instead focuses on the relative ranking of preferences.

    The cardinal school of thought views utility as something that can be quantified and measured, much like length or weight. This school of thought suggests that different goods and services can be assigned a specific level of utility, which can then be used to compare and contrast different consumption bundles. In other words, the cardinal school treats utility as an objective, measurable quantity that can be added, subtracted, and compared.

    On the other hand, the ordinal school of thought views utility as a subjective concept that cannot be measured numerically. This school of thought suggests that individuals do not assign numerical values to their preferences, but instead simply rank their preferences in order of importance. According to this school, the relative ranking of preferences is what matters, not the specific level of utility assigned to each preference.

    The ordinal school of thought is often associated with the concept of indifference curves, which represent the different combinations of goods and services that give an individual the same level of satisfaction. Indifference curves allow us to analyze preferences without having to assign numerical values to utility.

    Overall, the debate between the cardinal and ordinal schools of thought centers around whether utility is an objective, measurable quantity or a subjective concept that is difficult to quantify. While the cardinal school of thought has fallen out of favor in recent years, both schools have contributed to our understanding of how individuals make choices based on their preferences and constraints.Explain the demand for and pricing of productive factors emphasizing on the labour market

    In economics, productive factors refer to the resources that are required to produce goods and services. These factors include land, labor, capital, and entrepreneurship. Labor is one of the most important productive factors, and it refers to the human effort, skill, and time that is required to produce goods and services.

    The demand for labor is determined by the level of production that a firm wishes to achieve. The more production a firm aims for, the more labor it will demand. However, the level of labor demand is not only dependent on the level of production but also on the wage rate. If the wage rate is high, the firm may choose to use less labor and more capital instead. On the other hand, if the wage rate is low, the firm may choose to use more labor and less capital.

    The pricing of labor is determined by the interaction of labor supply and labor demand in the labor market. Labor supply refers to the number of people who are willing and able to work at a given wage rate. Labor demand, as discussed earlier, refers to the amount of labor that firms are willing and able to hire at a given wage rate.

    If the demand for labor exceeds the supply, there will be a shortage of labor, which will lead to an increase in wages. On the other hand, if the supply of labor exceeds the demand, there will be a surplus of labor, which will lead to a decrease in wages. This relationship between labor demand and labor supply is known as the labor market equilibrium.

    Factors that can affect labor demand and supply include changes in technology, changes in the demand for goods and services, changes in the supply of other productive factors such as capital, and changes in government policies such as minimum wage laws and immigration policies.

    In summary, the demand for labor is determined by the level of production and the wage rate, while the pricing of labor is determined by the interaction of labor demand and labor supply in the labor market.

    3) Explain the demand for and pricing of productive factors emphasizing on the labour market

    In economics, productive factors refer to the resources that are required to produce goods and services. These factors include land, labor, capital, and entrepreneurship. Labor is one of the most important productive factors, and it refers to the human effort, skill, and time that is required to produce goods and services.

    The demand for labor is determined by the level of production that a firm wishes to achieve. The more production a firm aims for, the more labor it will demand. However, the level of labor demand is not only dependent on the level of production but also on the wage rate. If the wage rate is high, the firm may choose to use less labor and more capital instead. On the other hand, if the wage rate is low, the firm may choose to use more labor and less capital.

    The pricing of labor is determined by the interaction of labor supply and labor demand in the labor market. Labor supply refers to the number of people who are willing and able to work at a given wage rate. Labor demand, as discussed earlier, refers to the amount of labor that firms are willing and able to hire at a given wage rate.

    If the demand for labor exceeds the supply, there will be a shortage of labor, which will lead to an increase in wages. On the other hand, if the supply of labor exceeds the demand, there will be a surplus of labor, which will lead to a decrease in wages. This relationship between labor demand and labor supply is known as the labor market equilibrium.

    Factors that can affect labor demand and supply include changes in technology, changes in the demand for goods and services, changes in the supply of other productive factors such as capital, and changes in government policies such as minimum wage laws and immigration policies.

    In summary, the demand for labor is determined by the level of production and the wage rate, while the pricing of labor is determined by the interaction of labor demand and labor supply in the labor market.

  152. Avatar Nwoye precious chinenye says:

    1• Utility theory of economic pertains to the value
    or worth of a certain goods, service, or items. It
    suggests that Goods, services, and items can
    be ranked according to their usefulness
    2a• cardinal school of thought
    2b• ordinal school of thought
    Cardinal school of thought: This approach emphasizes that utility is measurable. That is, after consuming a given quantity of a commodity, the consumer can simply evaluate his satisfaction through the use of figures which range from zero to infinity
    Ordinal school of thought: This approach of
    utility analysis requires that the consumer
    should make a scale of preference and choose
    between the various commodities that give him
    the same level of satisfaction
    3•when producing goods And services business require labour and capital as input for their production process, the demand of labour in an economic principal drive from the demand for the first output. That is if the demand for the first output increases, the firm will demand more labour thereby employing more workers but if the demand decreases the firm would have to layoff some staff

  153. Avatar Ugwu loveth chidimma says:

    1. Utility theory is based on the fact that the satisfaction which consumers derived from consumption of goods and services can be measure quantitative.
    2. Total and marginal utility.
    Total utility:it implies overall level of satisfaction derived from a good by a consumer .
    Marginal utility:it can be defined as the additional utility gained from the consumption of an additional unit of a good.
    3.demand for labour shows how many workers the firm are willing and able to hire at a given time and wage rate.

  154. Avatar Samuel uchechi immaculate says:

    Vocational and teachincal education
    department: Business education
    Name: Samuel uchechi immaculate
    Reg no: 2021/242870

    No1 : In economic, utility theory tries to explain the behavior of individual consumers in an economy. Utility theory argues that each person, given a list of option, can rank can rank those option in a precise order of preference, it’s states that consumers make decisions based on the satisfaction they can expect to receive from an action, even when outcomes are uncertain.

    2: The concept of utility can be analysed basically by the two school of thought they are
    a: The ordinal school of thought
    b: The cardinal school of thought

    The cardinal school of thought emphasis that utility is mearsurable.This means that the quantity of goods and services that satisfies the need of a consumer can be evaluated through the use of figures ranging from zero to infinity

    The ordinal requires that consumers make a scale of preference by choosing between the various commodities that gives one the same level of satisfaction.

    3: it’s explain that when producing goods and services, businesses required labour and capital as input to their production.The supply and demand for labour determine the wage or price paid for labour services.If demand for a firms output increases, the firm will demand more labour, thus hiring more staff and if demand decreases, in turn, it will required less labour and it’s demand of labour will fall.

  155. Avatar Name: Ugwuowo Nelson soludo. Reg no :2021/242151. Faculty: social science. Department: public administration and local government. says:

    1): Briefly discuss the elementary theory of utility
    The elementary theory of utility is a fundamental concept in economics that seeks to explain how people make choices based on the satisfaction, or utility, they derive from consuming goods and services. According to this theory, consumers aim to maximize their total utility or satisfaction from their consumption choices.

    The theory suggests that consumers have preferences over different goods and services, and they will choose the combination of goods and services that gives them the highest level of utility, subject to their budget constraint. The budget constraint means that consumers have limited income to spend on their consumption choices.

    To make decisions about their consumption, consumers assign values or utilities to each good and service they can buy. The utility function is a mathematical function that maps the quantity of each good or service consumed to a level of utility or satisfaction.

    The theory assumes that consumers have consistent preferences, which means that they will always choose the same bundle of goods and services if they face the same prices and income. It also assumes that consumers have rationality and are able to compare different options and make choices that maximize their utility.

    Overall, the elementary theory of utility is a basic framework that helps to explain how consumers make choices and allocate their resources based on their preferences and budget constraints. It has been widely used in economics to model consumer behavior and to derive important insights about market outcomes and welfare analysis.

    2): Mention and discuss the different views of utility according to the two school of thoughts which you have been taught

    The concept of utility has been interpreted in different ways by economists belonging to the cardinal and ordinal schools of thought.

    The cardinal school of thought views utility as a measurable quantity that can be assigned a numerical value. This school assumes that people have a “utility function” that can be used to measure the level of satisfaction or happiness they derive from consuming goods and services. The utility function is usually assumed to be based on an individual’s preferences, which can be ranked in terms of the level of satisfaction they provide. This school of thought uses the concept of marginal utility to explain how the satisfaction or utility gained from consuming an additional unit of a good or service decreases as the amount consumed increases.

    On the other hand, the ordinal school of thought views utility as an ordinal ranking rather than a measurable quantity. This school assumes that people have preferences over different goods and services, which can be ranked in order of their desirability. However, it does not assign any numerical value to these preferences or levels of satisfaction. Instead, it focuses on the relative ranking of preferences and uses this ranking to explain how people make choices.

    The main difference between the cardinal and ordinal schools of thought is that the former assumes that utility is measurable, while the latter views utility as an ordinal ranking. Another key difference is that the ordinal school of thought does not use the concept of marginal utility, which is central to the cardinal school.

    Overall, both schools of thought have contributed to our understanding of the concept of utility and how it can be used to explain consumer behavior. While the cardinal school focuses on quantifying utility, the ordinal school focuses on the relative ranking of preferences, which can still be used to derive important insights about consumer behavior and market outcomes.

    3): Explain the demand for and pricing of productive factors emphasizing on the labour market

    The demand for productive factors, such as labor, refers to the quantity of those factors that firms are willing and able to hire at a given price level. The pricing of productive factors refers to the determination of the wages and other payments that are made to those factors. The labor market is a crucial market for the economy, as it determines the availability of workers and the wages they receive.

    The demand for labor is derived from the demand for the goods and services that labor produces. As firms increase their production, they require more labor to produce the additional output. However, the demand for labor is not a fixed quantity and depends on several factors, such as the level of technology, the price of labor, the price of other inputs, and the state of the economy. For example, if the price of labor is high relative to the price of capital, firms may substitute capital for labor, reducing the demand for labor.

    The supply of labor, on the other hand, depends on the willingness and ability of workers to work at a given wage rate. The supply of labor is affected by factors such as education and training, demographics, and government policies, such as taxes and subsidies.

    The equilibrium wage rate in the labor market is determined by the intersection of the demand and supply curves for labor. At this equilibrium wage rate, the quantity of labor demanded by firms is equal to the quantity of labor supplied by workers. Any deviation from this equilibrium would lead to a surplus or shortage of labor.

    The pricing of labor is also affected by various factors, such as productivity, education and training, and the state of the economy. Higher productivity and skills generally lead to higher wages, as firms are willing to pay more for more productive workers. Additionally, government policies, such as minimum wage laws, can also affect the wage rate and the availability of labor.

    Overall, the demand for and pricing of labor in the labor market is determined by various factors, such as the level of production, the price of labor, and government policies. Understanding these factors is crucial for firms, workers, and policymakers, as they affect the availability of workers and the wages they receive, which can have significant impacts on the economy as a whole.

  156. Avatar Name: Ugwueze Paul Ebube C. says:

    Faculty: Faculty of social sciences.
    Reg no: 2021/242140.
    Department: public administration and local government .
    1) The elementary theory of utility is a foundational concept in economics that attempts to explain how individuals make decisions based on their preferences and constraints. The theory assumes that individuals seek to maximize their overall satisfaction or utility, and that they make choices based on the perceived benefits and costs of various alternatives. The theory also assumes that individuals have diminishing marginal utility, which means that the more of a particular good or service they consume, the less additional utility they receive from each additional unit.

    2) The two schools of thought in economics, the classical and neoclassical schools, have different views on how to measure utility. In particular, they differ in their approach to measuring the intensity of an individual’s satisfaction or utility from consuming a good or service.
    The classical school views utility as measurable( in utils) and quantifiable, and therefore subscribes to the concept of cardinal utility. According to this view, utility can be measured in absolute terms, such as units of satisfaction or happiness. In other words, the intensity of utility can be objectively measured and compared between different individuals.
    On the other hand, the neoclassical school views utility as subjective and unmeasurable, and therefore subscribes to the concept of ordinal utility. According to this view, utility can be ranked but not measured in absolute terms. In other words, the intensity of utility cannot be objectively measured and compared between different individuals, but only ranked based on individual preferences.
    Ordinal utility is based on the assumption that individuals have preferences over different bundles of goods or services, and that they are able to rank these bundles in order of preference. For example, an individual may prefer bundle A to bundle B, and prefer bundle B to bundle C. However, ordinal utility does not assign any numerical values to these preferences, and therefore cannot be used to determine the exact level of satisfaction or utility derived from each bundle.
    Overall, the difference between the ordinal and cardinal schools of thought lies in their approach to measuring utility. The classical school believes in measuring utility in absolute terms using cardinal utility, while the neoclassical school believes that utility is subjective and can only be ranked using ordinal utility.

    3) The demand for and pricing of productive factors, including labor, is determined by the interaction of supply and demand in the market. In the labor market, the demand for labor is determined by the marginal revenue product (MRP) of labor, which is the additional revenue generated by hiring an additional unit of labor. The supply of labor is determined by the number of individuals willing and able to work at a given wage rate. Wages will adjust until the market clears, meaning that the quantity of labor supplied equals the quantity of labor demanded. In addition, the pricing of other productive factors, such as capital and land, is also determined by supply and demand in their respective markets.

  157. Avatar Muogbo Eberechukwu Mary says:

    Name: Muogbo Eberechukwu Mary
    Department: public administration
    Course code: Eco 101
    Reg number: 11046869CF

    Questions:
    1. Briefly discuss the elementary theory of Utility
    2. Mention and discuss the different types of Utility according to the two schools of thought you have been taught
    3. Explain the demand for the pricing of productive factors emphasizing on the labor market.

    Answer
    1. Utility can be defined as the satisfaction derived from consuming a commodity. Utility refers to the ability of goods and services to satisfy unlimited human wants the types of Utility includes:
    1. Time utility
    2. Form utility
    3. Place utility
    4. Possession utility

    2. a Cardinal school of thoughts
    b ordinal school of thoughts

    A Cardinal school of thoughts: this approach emphasis that utility measurable. That is, after consuming a given quantity of a commodity the consumer can simply evaluate his satisfaction the use of figures which ranges from 0- infinity.

    B. Ordinal school of thought: this approach to consumer utility states that the utility can be measured inexact numbers but can only be ranked or put into order. This approach argues that utility/satisfaction is a completely a philological element and cannot be expressed in Cardinal numbers.

    3.- In competitive market, there are many buyers and sellers.
    – Factors of productions are input used to produce goods and services (output).
    – Owners of factors of production receive income from the firm’s that make use of these factors of production.
    – The supply of land is inelastic.
    -In perfect competition every consumer and producer are price takers.

    .

  158. Avatar Inyiama Favour Chimka says:

    1,Briefly discuss the elementary theory of utility.

    It is a theory postulated in economics that refers to the amount of satisfaction derived from the consumption of a commodity at a particular time. It seeks to explain the individuals’ observed behavior and choices. Any commodity that has the power to satisfy human wants is said to possess utility. The concept of utility was given much attention by the classical economists especially in relation to their theory of demand. It was earlier thought that utility cannot be measured in absolute units. We can now represent them analytically using a utility function—a mathematical formulation that ranks the preferences of the individual in terms of satisfaction different consumption bundles provide.

    2,Mention and discuss the different views of utility according to the two schools of thoughts which you have been taught.
    i. The cardinal utility school of thought.
    ii. The ordinal utility school of thought.

    i. The cardinal utility school of thought argues that the utility of a commodity can be measured. It is a quantitative approach to measuring utility. It presents the utility of something as a fixed number – it’s an exact measure of utility. Some economists who belong here argue that utility can be measured subjectively in units called ‘utils’ while others suggest that utility can be measured in monetary units.

    ii. The ordinal utility school of thought: It is a relative measure of utility. It describes how one can determine the value of a good or service by comparing it to another. Economists belonging to this school argue that it is not possible to measure utility i.e. satisfaction. They are of the opinion that although utility cannot be precisely measured, it is possible for consumers to make choices between different bundles of commodities by ranking them according to the level of satisfaction expected from each bundle.

    3,Explain the demand for and pricing of productive factors emphasizing on the labour market.

    The demand for labour shows how many workers the firms are willing and able to hire at a given time and wage rate. This demand may not necessarily be in long-run equilibrium. Equilibrium in the labour market depends on the wage rate firms are willing to pay and the amount of labour willing to provide the necessary work. The law of demand applies in labour markets this way: A higher wage or salary—that is, a higher price in the labour market—leads to a decrease in the quantity of labour demanded by employers, while a lower wage leads to an increase in the quantity of labour demanded. As the quantity of other inputs decreases, the demand for labour will decrease. Similarly, if prices of other inputs fall, production will become more profitable and suppliers will demand more labour to increase production. The opposite is also true. Higher input prices lower demand for labour.

    Reg. No: 2017/245818

  159. Avatar SAMUEL UCHECHI IMMACULATE says:

    Vocational and teachincal education
    Department: Business education
    Name: Samuel uchechi immaculate
    reg no 2021/242870

    No 1: In economic, utility theory tries to explain the behavior of individual consumers in an economy.its states that consumers make decisions based on the satisfaction they can expect to receive from an action, even when outcomes are uncertain, it’s also explain why consumers behave the way they do and make the purchase they make

    2: The concept of utility can be analysed basically by two school of thought they are
    a: The ordinal school of thought
    b: The cardinal school of thought
    The cardinal school of thought emphasis that utility is mearsurable, this means that the quantity of goods or services that satisfies the need of a consumer can be evaluated through the use of figures ranging from zero to infinity.

    The ordinal school of thought required that consumers make a scale of preference by choosing between the various commodities that gives one the same level of satisfaction

    3: It’s explain that when producing goods and services, business required labour and capital as input to their production process.
    The supply and demand for labour determine the wage or price paid for labour servicee

  160. Avatar Name: ONUORA SUSSAN CHINEDU. Reg No :10761468AJ. Course code : Eco 101. Department: public administration and local government. Level : 100. Faculty of social science says:

    1 utility is a term use to determine the worth or value of a good or service more specifically, utility is the satisfaction or benefits derived from consuming a good or services.
    Utility theory bases it’s believe upon individuals preference.it is a theory postulated I’m economics to explain behavior of individuals based on the premise people can consistently rank order their choices depending upon their preference. We can this state that individuals preference are intrisian any theory which proposes to get preferences is by necessity abstraction based on certain assumption. Utility theory is a positive theory that seeks to explain the individual observe behavior and choice, the difference between normative and positive aspect of a theory is very important in the discipline of economics. Some scholars argue that economics theories should be normative meaning that they should be prescriptive and tell people what to do.while some argue often successfully that economic theories are designed to explanation of observed behavior of agent in market vice positive in that aspect.
    Under the assumption of utility theory, we can assume that people bahaved as if they had a utility function and acted according to it therefore, the fact that a person does not know his or her utility function or even denied it’s existence does not contradict the theory. Economics have used experiment to decipher individuals utility function and behavior that that lies individuals utility.
    Individual faces a set of consumption bundles, so we assume that to have a clear preference that enable them to ‘rank order’ all bundle based on desirability that is the level of satisfaction each bundle shall provide to each individual. It ranks ordering based on preference tells as the theory itself has ordinal and cardinal utility
    ASSUMPTION OF UTILITY THEORY
    1COMPLETENESS: Individuals can have rank order all possible bundles, ranking ordering shows that the theory assume that no matter how many combination of consumption bundle are placed in front of individuals, Each individual can rank them in some order based on the preference this means that the individual can compare any bundle with any other bundle rank them in order of the satisfaction each bundle provide. Mathematically this property where in an individuals preference enable him or her to compare any given bundle with any other bundle is called the completeness property of preference.
    2 MORE IS BETTER: in this aspect we assume that an individual prefers the consumption of bundle A of good to bundle B. And then he is offered another bundle which contains more of everything in bundle A that is the new bundle is represented by aA where a = 1. The more is better assumption says that individuals prefer aA to A itself. Mathematically the more is better assumption is called Monotonicity assumption on preference. One can argue that this assumption breaks down frequently.
    3 MIX IS BETTER: we assume that the individual is indifference to the choice between one week of clothing Alone and one week of food thus choice itself is not preferred over the other.
    The mix better assumption about preference says that a mix of two say half weeks of food mixed with half week of clothing will be preferred to both stand alone choice
    4 RATIONALITY: this is the most important assumption that lays down all of utility theory. Under the assumption of rationality individuals preference avoid any kind of circularity.
    Utility theories argues that each person give a list of options can rank those options in a precise order of preference, Each person have difference choice. In economics utility theory governs individuals decision making.
    2 THE DIFFERENT VIEW OF UTILITY ACCORDING TO THE TWO SCHOOLS OF TAUGHT
    A The ordinal utility
    B The cardinal utility
    ORDINAL UTILITY: refers to the satisfaction level after consuming any good or services cannot be scaled in numbers. However these things can be arranged in order of preference. Utility is ranked based on satisfaction, it is more practical and sensible. Whereas, these things can be arranged in order of preference. Two English economist John Hick and R.J Allen 1930 argued that the consumer behavior theory be introduced based on ordinal utility. According to the ordinal approach utility is a psychological phenomenon like happiness, welfare, and satisfaction. The ordinal theory is highly subjective and differs across individual therefore it cannot be measured in quantifiable terms the function that represents utility of a products according to it’s preference but does not provide any numerical figure is know as an ordinal utility
    A consumer preference can be demonstrated graphically through indifference curves. It becomes easy when there are two types of commodities (xy) when (x1,y1) and (x2,y2). That’s on the same curve line and ( x1,y1)
    This is an example of indifference curve map where the preference of goods are shown but not their quantity. The utility according to this approach can be measured in relative terms such as less than and greater than.this approach states that consume behavior can be explained in terms of preference on ranking. Utility can be ranked qualitatively rather than quantitatively
    CARDINAL UTILITY
    According to this concept, the utility can be expressed similarly to how weight and height are expressed, however the economics lacked a precise unit for utility, Hence the derived a psychological unit termed as util
    Until is not regarded as a standard unit because it varies from person to person place to place
    APPLICATION OF CARDINAL UTILITY
    Welfare Economics
    Marginalism
    Expected utility theory
    Intertemporal utility
    3 Demand for and pricing of productive factors emphasizing on the labour.
    What is Demand for Labor
    When producing goods and services, businesses require labor and capital as inputs to their production process. The demand for labor is an economics principle derived from the demand for a firm’s output. That is, if demand for a firm’s output increases, the firm will demand more labor, thus hiring more staff. And if demand for the firm’s output of goods and services decreases, in turn, it will require less labor and its demand for labor will fall, and less staff will be retained.

    Labor market factors drive the supply and demand for labor. Those seeking employment will supply their labor in exchange for wages. Businesses demanding labor from workers will pay for their time and skills.

  161. Avatar Inyiama Favour Chimka , Reg. No: 2017/245818 says:

    1,Briefly discuss the elementary theory of utility.

    It is a theory postulated in economics that refers to the amount of satisfaction derived from the consumption of a commodity at a particular time. It seeks to explain the individuals’ observed behavior and choices. Any commodity that has the power to satisfy human wants is said to possess utility. The concept of utility was given much attention by the classical economists especially in relation to their theory of demand. It was earlier thought that utility cannot be measured in absolute units. We can now represent them analytically using a utility function—a mathematical formulation that ranks the preferences of the individual in terms of satisfaction different consumption bundles provide.

    2,Mention and discuss the different views of utility according to the two schools of thoughts which you have been taught.
    i. The cardinal utility school of thought.
    ii. The ordinal utility school of thought.

    i. The cardinal utility school of thought argues that the utility of a commodity can be measured. It is a quantitative approach to measuring utility. It presents the utility of something as a fixed number – it’s an exact measure of utility. Some economists who belong here argue that utility can be measured subjectively in units called ‘utils’ while others suggest that utility can be measured in monetary units.

    ii. The ordinal utility school of thought: It is a relative measure of utility. It describes how one can determine the value of a good or service by comparing it to another. Economists belonging to this school argue that it is not possible to measure utility i.e. satisfaction. They are of the opinion that although utility cannot be precisely measured, it is possible for consumers to make choices between different bundles of commodities by ranking them according to the level of satisfaction expected from each bundle.

    3,Explain the demand for and pricing of productive factors emphasizing on the labour market.

    The demand for labour shows how many workers the firms are willing and able to hire at a given time and wage rate. This demand may not necessarily be in long-run equilibrium. Equilibrium in the labour market depends on the wage rate firms are willing to pay and the amount of labour willing to provide the necessary work. The law of demand applies in labour markets this way: A higher wage or salary—that is, a higher price in the labour market—leads to a decrease in the quantity of labour demanded by employers, while a lower wage leads to an increase in the quantity of labour demanded. As the quantity of other inputs decreases, the demand for labour will decrease. Similarly, if prices of other inputs fall, production will become more profitable and suppliers will demand more labour to increase production. The opposite is also true. Higher input prices lower demand for labour.

  162. Avatar Okereke Nmasichukwu Revival says:

    Name: Okereke Nmasichukwu Revival
    Department: Public administration and local government.
    Reg no: 10494364AE
    Faculty of social sciences.
    1. Consumer behavior theories, which presuppose that customers will attempt to maximize their utility given the resources at their disposal, can be used to indirectly determine a consumer’s utility, even though it is relatively difficult to do so. When a customer feels satisfied after using a product or service, it can be said that the item has utility. Utility is relative to the customer and depends on time, place, form, and possession.
    Types of utility
    1. Time utility
    2. Form utility
    3. Place utility
    4. Possession utility

    2. The cardinal school of thought;

    According to this school of thought, utility can be measured, which means that the amount of products or services needed to satisfy a consumer’s need may be calculated using numbers between zero and infinity.

    The cardinal school of thinking is based on five premises.
    1. The quality of the products or services affects total utility.
    2. The consumer’s income in money is constant.
    3. The marginal utility is diminishing.
    4. The buyer is sensible.
    5. Utility may be measured.

    The ordinal school of thought;

    According to the ordinal approach to utility, consumers must rank their preferences for diverse goods that provide us with the same amount of satisfaction. This method is predicated on the idea that utility may be graded at different degrees of consumption. An indifference curve—a curve that depicts the degrees of contentment gained by a consumer via the consumption of the commodities—is used in this strategy. A combination of indifference curves is known as an indifference map.

    3. The issue of determining factor prices is satisfactorily resolved by the contemporary theory of pricing of factors of production, sometimes referred to as demand supply theory. According to the idea, the forces of supply and demand are responsible for determining the price of a commodity, just as they are responsible for determining the price of a factor of production.

  163. Avatar Ngwoke Rita Chinenyenwa / Reg No. Ngwoke Rita Chinenyenwa,2021/245633, Social Science, Public Administration and local government says:

    1. WHAT IS THE UTILITY THEORY IN ECONOMICS?
    In economics, utility theory tries to explain the behavior of individual consumers in an economy. Utility theory argues that each person, given a list of options, can rank those options in a precise order of preference. Each person has different choices which are set, not changing over time.
    What are some Examples of Utility?
    One example of utility is the nutrition that you get when you eat food. People need food and water to survive, but some food and water are of higher quality than others.
    Drinking purified water offers more utility than drinking dirty water because it satisfies your thirst without the potential to get you sick. A freshly cooked meal provides more value than a frozen, microwaved meal because it is more nutritious and generally tastes better.
    Products that don’t satisfy a physical need can also offer utility. For example, a piece of art that someone uses to decorate their home satisfies a desire for a home that looks good.
    The same product can offer different levels of satisfaction to different consumers. Someone who enjoys playing video games will get more utility from a new game than someone who prefers board games.
    What are the characteristics of utility?
    Four characteristics of utility are form, time, place, and possession.
    Form utility is the value that an item has based on the form that it takes. Individual car parts have value, but when someone assembles them into a functional vehicle, the utility the car offers is higher than the utility offered by each of its parts alone.
    Time utility is the satisfaction that a product offers to a consumer based on when they receive the product. A hungry consumer receives more pleasure from food than someone who just ate. If a consumer never encounters a product, even if it’s high quality, they never receive its utility.
    Place utility is the value that a product offers based on where the product is. If you’re hiking, a hiking backpack provides significant utility. If you’re trying to bring your books to school, a hiking backpack works, but isn’t quite as useful, offering less value. If you’re staying at home for the next few weeks, the bag provides much less utility.
    Possession utility describes the utility that something offers based on who has that item. A DVD in a store has value, but it doesn’t provide as much value as it would if it were in a consumer’s DVD player, letting a group of people watch the movie. The DVD offers additional utility because someone who will use it possesses it.


    2. WHAT ARE THE 2 SCHOOLS OF THOUGHT IN MODERN PHILOSOPHY?
    There are four broad schools of thought that reflect the key philosophies of education that we know today. These schools of thought are: Idealism, Realism, Pragmatism, and Existentialism. It is important to note that idealism and realism, otherwise known as general or world philosophies, have their roots in the work of the ancient Greek philosophers: Plato and Aristotle. Whereas pragmatism and existentialism are much more contemporary schools of thought.
    IDEALISM
    Idealism is a school of philosophy that emphasizes that “ideas or concepts are the essence of all that is worth know- ing” (Johnson et. al., 2011, p. 87). Based on the writings of Plato, this school of philosophy encourages conscious reason- ing in the mind. Furthermore, idealists look for, and value, universal or absolute truths and ideas. Consequently, idealists believe that ideas should remain constant throughout the centuries.
    REALISM
    Realism is a school of 
 philosophy with origins in the work of Aristotle. This philosophy emphasizes that “reality, knowledge, and value exist independent of the human mind” (Johnson, 2011, p. 89). Realists argue for the use of the senses and scientific investigation in order to discover truth. The application of the scientific method also allows individuals to classify things into different groups based on their essential differences.

    PRAGMATISM
    Pragmatism is “a process 
philosophy 
that stresses evolving and 
change rather than being” (Johnson et. al., 2011, p. 91). In other words, pragmatists believe that reality is constantly changing so we learn best through experience.
    According to pragmatists, the learner is constantly conversing and being changed by the environment with whom he or she is interacting. There is “no absolute and unchanging truth, but rather, truth is what works” (Cohen, 1999, p.1). Based on what is learned at any point and time, the learner or the world in which he or she is interacting can be changed.
    EXISTENTIALISM
    Existentialism is a school of philosophy 
 that “focuses on the 
importance of the individual rather than on external standards” (Johnson et. al., 2011, p. 93). Existentialists believe that our reality is made up of nothing more than our lived experiences, therefore our final realities reside within each of us as individuals. As such, 
 the physical world has no real meaning outside our human 
 experience.
    3. What is Demand for Labor
    When producing goods and services, businesses require labor and capital as inputs to their production process. The demand for labor is an economics principle derived from the demand for a firm’s output. That is, if demand for a firm’s output increases, the firm will demand more labor, thus hiring more staff. And if demand for the firm’s output of goods and services decreases, in turn, it will require less labor and its demand for labor will fall, and less staff will be retained.
    Labor market factors drive the supply and demand for labor. Those seeking employment will supply their labor in exchange for wages. Businesses demanding labor from workers will pay for their time and skills.
    BREAKING DOWN Demand for Labor
    Demand for labor is a concept that describes the amount of demand for labor that an economy or firm is willing to employ at a given point in time. This demand may not necessarily be in long-run equilibrium. It is determined by the real wage firms are willing to pay for this labor and the number of workers willing to supply labor at that wage.
    A profit-maximizing entity will command additional units of labor according to the marginal decision rule: If the extra output that is produced by hiring one more unit of labor adds more to total revenue than it adds to the total cost, the firm will increase profit by increasing its use of labor. It will continue to hire more and more labor up to the point that the extra revenue generated by the additional labor no longer exceeds the extra cost of the labor. This relationship is also called the marginal product of labor (MPL) in the economics community.
    Other Considerations in Demand for Labor
    According to the law of diminishing marginal returns, by definition, in most sectors, eventually the MPL will decrease. Based on this law: as units of one input are added (with all other inputs held constant) a point will be reached where the resulting additions to output will begin to decrease; that is marginal product will decline.
    Another consideration is the marginal revenue product of labor (MRPL), which is the change in revenue that results from employing an additional unit of labor, holding all other inputs constant. This can be used to determine the optimal number of workers to employ at a given market wage rate. According to economic theory, profit-maximizing firms will hire workers up to the point where the marginal revenue product is equal to the wage rate because it is not efficient for a firm to pay its workers more than it will earn in revenues from their labor.

  164. Avatar OMEJE PERPETUA UZOAMAKA says:

    Name:omeje perpetua uzoamaka
    Department: public administration and local government
    Martic number: 2021/242155

    Question 1:utility theory rest upon the ideal that people make decision by assigning imaginary utility value to the original monetary value. In economic utility theory governs individual decision making. It is a theory postulated in economic based on the premise people can to explain behaviour of individual. It also a positive theory that seeks to explain the individual observed behaviour and choice it means that it is designed to be explanation of observed behaviour of agent in the market.
    Question 2:cardinal school of taught and
    Ordinal school of taught
    Cardinal school of taught emphasize that utility is mensurable. It represent the absolute level of satisfaction and ranges from zero to infinity. The father of cardinal utility is Alfred Marshall.
    Ordinal school of taught believes that utility cannot be measured quantitatively. It is designed to study relative satisfaction levels, it is not additive rather it could only be ranked according to preference. It argues that utility is completely a psychological element and cannot be expressed in cardinal numbers. Hicks and Allen propounded the ordinal approach of utility analysis, they are known as the neoclassical economists
    Question 3: a labour market is the place where workers and employees interact with each other .the pricing of the commodity itself and the quantity demanded of the commodity have negative relationship as the price of the goods or service rises,the quantity demanded falls there by causing problems in the labour market. Demands consists of businesses that need labour based on organizational changes economic activities and industry trends. changes in the wage rate causes a movement along the demand curve. Higher labour cost reduce employment and or the hours worked by individual employees laws that raise labour cost can either increase total employment or increase hours per worker but they cannot do both.

  165. Avatar EMENGINI STEPHANIE CHISOM. 2021/243739 says:

    NAME:EMENGINI STEPHANIE CHISOM
    REG NO:2021/243739
    DEPT:PUBLIC ADMINISTRATION AND LOCAL GOVERNMENT
    COURSE CODE:ECO 101

    No 1

    The theory of utility tries to explain that the behavior of Individuals based on the premise people can consistently rank order their choices depending on their preferences.It bases its beliefs upon individual’s preferences .
    The theory of utility argues that each person that has been given a list of options can rank those options in an order of preference.it is also based on the fact that satisfaction which consumers derived from consumption of goods and services can be measured quantitatively.
    Utility theory is a positive theory that seeks to explain the individual’s observed behavior’s choices.The utility theory was developed by Von Newman and Morgenstern that provided a scientific justification for this assumption.We can thus state that Individual’s preference are intrinsic;Any theory which proposes to capture preferences,is by necessity based on certain assumptions.Utilities play the main role in game theory;they capture the preferences that the individuals have for different outcomes in terms of real numbers thereby enabling real valued functions to be used in individual theoretical analysis.The four basic assumptions of utility theory are ;That a consumer can rank any number of given options,more total utility is always better than less,a mix of goods are better than a set of one good and consumers are rational decision markers:
    1.Rational consumers: it is assumed that individuals are rational decision makers who will always make the best of decisions in light of utility
    2.More Total Utility is better: For a good service having more utility is always Better than having less as it points to more gratification found in the good or service.
    3.Ranking options:An individual can rank any number of options based on their utility and the amount of satisfaction they will gain from each.
    4.Variety is better:To have a set of diversified goods,is better than having a set of only one good,this is a result of the increased usefulness found in different goods compared to a single good.

    No 2.
    2.The schools or thoughts are:
    -Cardinal school of thought
    -Ordinal school of thought

    THE CARDINAL SCHOOL OF THOUGHT
    This approach says that the utility of each commodity is measurable.According to classical economists it can be measured in terms of number.Cardinal school of thought explains that after consuming a given amount of quantity the consumer can choose to evaluate his satisfaction through the use of figures which range from Zero to infinity.
    Many traditional economists proposed a view that utility is measured quantitatively like length,height,weight,temperature e.t.c.It believes utility can be measured quantitatively.
    The assumptions of Cardinal approach
    1.Utility is measurable
    2.Money income of the consumer is held constant.
    3.The consumer is rational.
    4.There is always diminishing marginal utility
    5.Cardinal utilities evaluate objectively

    THE ORDINAL SCHOOL OF THOUGHT
    The ordinal school of thought believes that utility cannot be measured quantitatively.it believes that utility can only ranked according to preference and it is not additive.
    According to ordinal approach utility is a psychological phenomenon like happiness,satisfaction and welfare.It is very subjective and differs only across individuals.That is why we say that it can not be measured in quantifiable terms.The utility according to their approach can be measured in relative terms like less than and greater than .It states that consumer behavior can only be explained in terms of preferences or rankings.
    A consumer must be able to determine the order of preference when faced with different bundles of goods by ranking the various bundles of goods according to the satisfaction that each bundle gives.
    The assumptions of ordinal utility approach
    1.Utility is ordinal:According to this assumption utility is said to be measurable but can only be ranked according to order of preference of different kinds of goods.
    2.Rationality: The consumer is assumed to be rational.ie.He aims at maximizing total utility given his limited income and the prices of goods and services.
    3.Diminishing Marginal rate of substitution(MRS):MRS is the rate at which the consumer can exchange between two goods and still be at the same level of satisfaction.This assumption is of the fact that the preferences are ranked in terms of indifference curves which are assumed to be convex to the origin.
    4.Non satiation:It is assumed that the consumer would always prefer a large number of goods to a small number of the same good.He is never over supplied with goods within the normal range of consumptions.

    No 3.
    The demand for productive factors in economics refers to the amount of resources,such as labor,capital,and land,that firms require to produce goods and services.In the Labour market,the demand for Labour is gotten from the demand for the goods and services that Labour produces.the pricing of productive factors,on the other hand is associated With the prices that an entrepreneur pays to avail the services rendered by the factors of production.
    Firms will demand for Labour as long as the marginal revenue product(MRP)of Labour is equal to or greater than the wage rate. The marginal revenue product(MRP) of Labour represents the extra revenue earned by hiring an extra worker.it is calculated by multiplying the marginal product of Labour(MPL)by the marginal revenue(MR)of the output produced.
    In a competitive Labour market,the wage rate will have to adjust to balance the demand and supply for Labour.if the demand for Labour increases,the wage rate will surely increase which in turn will cause an increase in the Labour supply.Also,if the demand for Labour decreases the wage rate will decrease,which will decrease the Labour supply.
    In addition to the demand for Labour,the supply is a very fundamental factor in determining the wage rate.The number of individuals willing and able to work at a particular wage rate will determine the supply of Labour. Some of the factors that affect the Labour supply are;demographics,level of education and training,and governmental policies like taxes,and transfer payments.If wage rates are too high,then firms should reduce their demand for Labour and substitute other inputs,Such as capital,this is known as the substitution effect.On the other hand,if the wage rate is too low then the Labour supply may decrease as workers might choose not to work at a lower wage rate.This is known as the income effect.
    Generally,the pricing of productive factors including Labor,is determined by the interaction of supply and demand in the market.the demand for Labour is gotten from the demand for goods and services that Labour produces,while the supply of Labour is determined by the total number of individuals that are willing and able to work at a particular wage rate.

  166. NAME : MAZELI OJIUGO OLIVE
    REG NO 2020/241171
    DEPT: NURSING SCIENCE

    ASSIGNMENT

    1). utility theory tries to explain the behavior of individual consumers in an economy. Utility theory argues that each person, given a list of options, can rank those options in a precise order of preference. Each person has different choices which are set, not changing over.
    It is a theory postulated in economics to explain behavior of individuals based on the premise people can consistently rank order their choices depending upon their preferences. utility is a term used to determine the worth or value of a good or service. More specifically, utility is the total satisfaction or benefit derived from consuming a good or service. Utility theory in economics pertains to the value or worth of a certain good, service, or item. It suggests that goods, services, and items can be ranked according to their usefulness. The premise was initially theorized by Swiss mathematician, Daniel Bernoulli, in the 18th century.

    2)a. Cardinal school of thought

    CARDINAL SCHOOL OF THOUGHT: This approach emphasizes that utility is measurable. That is, after consuming a given quantity of a commodity the consumer can simply evaluate his satisfaction through the use of figures which range from zero to infinity. However, cardinal utility and ordinal utility are the two predominant theories of utility. The cardinal utility believes in measuring the satisfaction level in utils and the ordinal utility believes that the satisfaction level cannot be evaluated; however, it can be levelled.

    2b). Ordinal school of thought

    The ordinal approach to consumer’s utility states that the utility/satisfaction cannot be measured in exact numbers but can only be ranked or put into order. This approach argues that utility/satisfaction is completely a psychological element and it cannot be expressed in cardinal numbers. In ordinal utility, the consumer only ranks choices in terms of preference but we do not give exact numerical figures for utility. For example, we prefer a BMW car to a Nissan car, but we don’t say by how much. It is argued this is more relevant in the real world.

    The concept of ordinal utility states that the level of satisfaction a consumer obtains after consuming various commodities cannot be measured in numbers but can be arranged in the order of preference.

  167. Name : MAZELI OJIUGO OLIVE
    COURSE: ECO 101
    Department: NURSING SCIENCES
    REG NO: 2020/241171

    ASSIGNMENT

    1). utility theory tries to explain the behavior of individual consumers in an economy. Utility theory argues that each person, given a list of options, can rank those options in a precise order of preference. Each person has different choices which are set, not changing over.
    It is a theory postulated in economics to explain behavior of individuals based on the premise people can consistently rank order their choices depending upon their preferences. utility is a term used to determine the worth or value of a good or service. More specifically, utility is the total satisfaction or benefit derived from consuming a good or service. Utility theory in economics pertains to the value or worth of a certain good, service, or item. It suggests that goods, services, and items can be ranked according to their usefulness. The premise was initially theorized by Swiss mathematician, Daniel Bernoulli, in the 18th century.

    2)a. Cardinal school of thought

    CARDINAL SCHOOL OF THOUGHT: This approach emphasizes that utility is measurable. That is, after consuming a given quantity of a commodity the consumer can simply evaluate his satisfaction through the use of figures which range from zero to infinity. However, cardinal utility and ordinal utility are the two predominant theories of utility. The cardinal utility believes in measuring the satisfaction level in utils and the ordinal utility believes that the satisfaction level cannot be evaluated; however, it can be levelled.

    2b). Ordinal school of thought

    The ordinal approach to consumer’s utility states that the utility/satisfaction cannot be measured in exact numbers but can only be ranked or put into order. This approach argues that utility/satisfaction is completely a psychological element and it cannot be expressed in cardinal numbers. In ordinal utility, the consumer only ranks choices in terms of preference but we do not give exact numerical figures for utility. For example, we prefer a BMW car to a Nissan car, but we don’t say by how much. It is argued this is more relevant in the real world.

    The concept of ordinal utility states that the level of satisfaction a consumer obtains after consuming various commodities cannot be measured in numbers but can be arranged in the order of preference.

  168. utility is the satisfaction a consumer derived from consuming a particular product at a particular time
    Forms of utility
    Time utility: This is the satisfaction a consumer derived from consuming a commodity at a particular point in time.
    place utility: This is the satisfaction a consumer derived from consuming a commodity depending on how accessible it is.
    Form utility: some commodity cannot be consumed at their original state. This is the satisfaction a consumer derived from consuming a commodity after it have been transformed
    Possession utility: This is the satisfaction you derived when you own a commodity not when you borrow them.
    concept of utility
    There are various concept of utility
    concept of total utility: This is the satisfaction a consumer derived from consuming all the unit of goods at a particular time
    concept of average utility: This is the satisfaction a consumer derived from consuming a bit or per unit of a commodity at a particular time.
    concept of marginal utility: This is the additional satisfaction a consumer derived from consuming an extra commodity at a particular time.

    view of utility according to the two schools of thoughts.
    cardinal school of thought
    ordinal school of thought
    cardinal school of thought: The theory of cardinal utility was applied by prof. Marshall.This explains that the satisfaction level after consuming any goods and services can be scaled in terms of countable numbers.
    They believe that utility can be measured in utils.

    ordinal school of thought: The theory of ordinal utility was applied by prof. J R Hicks. It explains that the satisfaction level after consuming any goods or services cannot be scaled in number. However, these things can be arranged in the order of preference.

    3. The demand for labour shows how many workers the firms are willing and able to have at a given time and wage rate. Therefore, demand for labour us a concept that illustrates the amount of labour a firm is willing to employ at a particular wage rate.
    factors affecting demand for labour
    changes in technology
    changes in product demand
    changes in the number of firms
    changes in the use of other factors of production.

    pricing of productive factor is associated with the prices that an entrepreneur pays to avail the services rendered by the factor of production.

  169. Avatar Udeji chiamaka favour says:

    Name:Udeji chiamaka favour
    Reg no:2021/245634
    Email address:chifavour8287@gmail.com
    Faculty:social science
    1.In economics,utility theory explains the behaviour of individuals in the commodity or economy.
    It argues that each person given a list of option can put those options in a good scale of preference,each person has different choices.
    Utility theory relies on few assumptions,one of the assumption is that mixing of goods is better,if a consumer values or needs two items urgently then a combination of the two offers more expected utility.
    Utility theory lies on rational decision making,it also explains why consumers act the way they do and also how they purchase goods.

    2.i.Cardinal school of thought
    ii.Ordinal school of thought
    A.Cardinal school of thought:It emphasizes that utility is measurable,that is after consuming a given amount of commodity,the consumer can simply evaluate his satisfaction through the use of figures ranging from o to infinity.
    B.Ordinal school of thought:This states that satisfaction can’t be measured in the exact numbers but can only be ranked or put in order.
    An individual is preferred to make one choice over others.
    However,the both are the two predominant theories of utility,the cardinal believes in measuring satisfaction while ordinal believes satisfaction cannot be measured or evaluated.
    3.1.The demand for goods and services
    The demand for the factors of production is a derived demand.
    For example,if a bread baker benefits from an increase in the demand of bread,he will definitely need more flour to meet the demand.

    2.The price for different factors of production
    The prices of alternative factors of production are monitored by firms in order to ensure they are maximizing profits.

  170. Avatar Asogwa Cynthia chiamaka says:

    Name : Asogwa Cynthia chiamaka
    Reg number: 2021/245886
    Department: pure and industrial chemistry
    Course code : Eco 101 Assignment

    1. The elementary theory of utility is said to be the satisfaction that a consumer derives from consuming a commodity or service at any given time. Utility is therefore relative to a consumer and the variations among the individual or consumers depend on time , place and form.thus utility which is the capacity of a commodity or service to satisfy a human want, depends on time , place & form
    ( No2) These are the two theories of utility
    a. CARDINAL UTILITY and
    b. ORDINAL UTILITY
    The different views of the above utility according to the two school of thought are ;
    (a.) Cardinal school of thought: This approach emphasize that utility is measurable, that is after consuming a given quantity of a commodity the consumer can simply evaluate his satisfaction through the use of figures which rang from zero to infinity
    (b.) Ordinal school of thought; the utility/satisfaction cannot be measured in exact number,in quantitative terms but it can only be ranked or put into order. Therefore the the utility/satisfaction is completely a psychological elements and it can’t be expressed in cardinal number, rather the consumer can compare the utility occurring from different commodities.
    ( No 3)
    The demand for and pricing of productive factor emphasizing on the labour market; The law of demand applies in labor market, A higher salary or wage that is higher price in the labour market lead to a decrease in the quantity of labor demanded by employers . while a lower salary or wage leads to an increase in the quantity of labor demanded.productive factors relates out put to the number of workers employed ,it doesn’t measure the specific contribution of labor alone.

  171. Avatar Uche-Ohia Priscilla Ugochi says:

    Name: Uche-Ohia Priscilla Ugochi
    Reg no: 2021/246971
    Department: Nursing science
    Course: Eco 101

    1. Briefly discuss the elementary theory of utility:
    The elementary theory of utility is based on individual preferences. It tries to explain the satisfaction derived by consumers from consumption of certain goods and services, subject to their budget constraints. The elementary theory of utility provides a framework for understanding how individuals make a decision about consumption.

    2 Mention and discuss the different views of utility according to the two schools of thought which you have been taught:
    i Cardinal school of thought
    ii Ordinal school of thought

    i The Cardinal school of thought: This view assumes utility can be numerically measured, in units such as “utils”. This view has been largely discredited due to challenges encountered in measuring subjective satisfaction in objection units.
    ii The Ordinal school of thought believes that utility can
    be ranked or ordered, but not numerically measurable. This means that individuals can determine whether they prefer one bundle of goods over another, but cannot assign a precise numerical value to their preferences.

    3. Explain the demand for and pricing of productive factors emphasizing on the labor market.

    Demand: firms demand productive factors in order to produce goods and services. In the labor market, the demand for labor and capital is influenced by factors such as, cost of production and the level of demand for the final product.
    The pricing of productive factors refers to the amount of money that firms are willing to pay for these factors of production. The price of labor and capital is determined by market forces of supply and demand.
    productivity of labor, the price of their inputs, the demand for the final product and supply of labor influences the demand for and pricing of productive factors in the labor market, hence they play an important role in determining the equilibrium wage rate and employment level in the labor market.

  172. Avatar Arinze Uchechukwu Deborah says:

    Name: Arinze Uchechukwu Deborah
    Reg no: 2020/244267
    Dept: Nursing Sciences
    1. Utility theory in economics pertains to the value or worth of a certain good, service or item. It suggest that goods, services and items can be ranked according to their usefulness. The premise was initially theorized by Swiss mathematician Daniel Bernoulli, in the 18th century. Bernoulli founded the idea with regard to the differing values of things with respect to the theory, the utility of an item tends to be closely correlated to it’s price. An item such as gold is regarded useful thus utility (combined with it’s scarcity) is very important. Although it’s hard to calculate the exact utility of something, Economist use abstract measurements to capture the usefulness of things.
    2a. Cardinal school of thought
    This was propounded by the neo-classical economist who believe that utility is measurable and the consumer can express his satisfaction in Cardinal or quantitative numbers i.e (1,2,3).
    Assumptions of Cardinal school
    1. Rationality
    2. Limited resources (money)
    3. Maximizes consumer’s satisfaction
    4. Diminishing marginal utility
    B. Ordinal school of thought:
    This concept states that the level of satisfaction a consumer obtains after consuming various commodity cannot be measured in number but can be arranged in order preference. It functions in representing the preferences of an agent on an ordinal scale.
    3. Demand for labor shows the number of workers the firms are willing and able to hire at a given time and wage rate.
    For firms to demand for labor the labor productivity must be at increase , this would shift the labor demand curve outwards.

  173. 1.
    In economics, utility theory tries to explain the behavior of individual consumes in an economy. Utility theory argues that each person, given a list if options,can rank those options in a precise order of preference. Each person has different choices which are set,not changing over time.
    We also have four basic assumptions of utility theory,they are:
    a. A customer can rank any number of given options
    b. More total utility is always better than less.
    c. A mix of goods is better than a set of one good
    d. Customers are rational decision makers.
    Types of utility Theory
    1.Form utility
    2. Time utility
    3. Place utility
    4. Possession utility
    2.
    Firstly, school of thought is a set of ideas or opinions about a matter that are shared by a group of people.
    Cardinal Utility is the idea that economic welfare can be directly observable and be given a value.
    For example, people may be able to express the utility that consumption gives for certain goods. For example, if a Nissan car gives 5,000 units of utility, a BMW car would give 8,000 units. This is important for welfare economics which tries to put values on consumption. For example, allocative efficiency is said to occur when Marginal cost = Marginal Utility.The idea of cardinal utility is important to rational choice theory. The idea consumers make optimal choices to maximise their utility
    While,In ordinal utility, the consumer only ranks choices in terms of preference but we do not give exact numerical figures for utility.
    For example, we prefer a BMW car to a Nissan car, but we don’t say by how much.
    It is argued this is more relevant in the real world. When deciding where to go for lunch, we may just decide I prefer an Italian restaurant to Chinese. We don’t calculate the exact levels of utility.
    In summary,Cardinal utility gives a value of utility to different options. Ordinal utility just ranks in terms of preference.
    3.
    If labour productivity increases, firms will demand more labour at each wage rate and the firm’s demand for labour itself will increase. This would shift the labour demand curve outwards.If productivity per unit of labour input (or per worker) increases, while wages remain constant.

  174. Avatar Uzoaru John Chiagoziem says:

    Uzoaru John Chiagoziem
    Department of Public Administration And Local Government
    2021/246592
    1.Utility theory in economics pertains to the value or worth of a certain good, service, or item. It suggests that goods, services, and items can be ranked according to their usefulness. The premise was initially theorized by Swiss mathematician, Daniel Bernoulli, in the 18th century. Bernoulli founded the idea with regard to the differing values of things. With respect to theory, the utility of an item tends to be closely correlated to its price. An item such as gold, which is very useful and thus has great utility (combined with its scarcity), is very expensive. Total utility is closely tied to the bare concept of utility. Total utility points to the aggregate amount of usefulness and fruition there is to be gained from the use of a specific good, service, or other item. Furthermore, the abstract measurement of utility is another key concept of the theory. Although it’s hard to calculate the exact utility of something, economists use abstract measurements to capture the usefulness of things.

    The four basic assumptions of utility theory are that a customer can rank any number of given options, more total utility is always better than less, a mix of goods is better than a set of one good, and customers are rational decision makers:

    Ranking Options – An individual can rank any number of options based on their utility and the amount of satisfaction they’ll gain from each
    More Total Utility is Better – For a good, service, or any other item, having more total utility is always better than having less as it points to more gratification found in the good, service, or item
    Variety is Better – To have a diversified set of goods is better than to have a set of only one good. This is due to the increased usefulness found in differing goods compared to a single good
    Rational Consumers – It is generally assumed that individuals are rational decision makers who’ll always make the best choice in light of utility
    There are also different types of utility, such as;

    Form Utility – Worth of the good or service based on the combined resources it took to create the good or service
    Time Utility – The utility that is found in offering a good or service to consumers at the right time
    Place Utility – Refers to offering a good or service in the right place for consumers’ easy accessibility
    Possession Utility – The satisfaction a consumer gains from owning a certain product/good
    2. i..Ordinal Utility states that the satisfaction a consumer gets after consuming a good or service cannot be scaled in numbers, whereas, these things can be arranged in the order of preference. Two English economists, John Hicks and R.J. Allen 1930 argued that the consumer behavior theory should be introduced based on Ordinal Utility. According to the ordinal approach, utility is a psychological phenomenon like happiness, satisfaction, and welfare. The ordinal theory is highly subjective and differs across individuals. Therefore, it cannot be measured in quantifiable terms.

    The function that represents utility of a product according to its preference, but does not provide any numerical figure, is known as an Ordinal Utility. In simpler words, this theory affirms that it is relevant to ask which item is better as compared to others instead of how good is that product. For example, a BMW car is favored more than a Toyota car, but it cannot be determined by what percentage.

    Apart from showing a mathematical function, a consumer’s preference can be demonstrated graphically through indifference curves. It becomes easy when there are two types of commodities x and y. Each indifference curve provides coordinates (x,y) when (x1, y1) and (x2, y2) lie on the same curve line and (x1, y1) ~ (x2, y2).

    This is an example of an indifference curve map where the preference of goods are shown but not their quantity. Each of the curves represents a combination of two services or goods. The consumers are equally satisfied with the goods and services. The more distant a curve is from the origin, the higher its utility level.

    The utility according to this approach can be measured in relative terms such as less than and greater than. This approach states that consumer behavior can be explained in terms of preferences or rankings. For example, a consumer may prefer soft drinks over hard dr