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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Comments 804

  1. Anigbo Esther Chisom says:

    Name: Anigbo Esther Chisom
    Reg no: 2020/243974
    Department: Pure and Industrial Chemistry
    Email: estheranigbo9@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.

  2. Onyeka Martin Kenechukwu ,2018/246744 says:

    Ans
    1. Utility theory tries to explain the behavior of individual consumer in an economy. Utility is involved in everything we do and we get satisfaction from consuming or using goods or services. This is what utility theory is concerned with: explaining individuals’ choices and measuring satisfaction level from consuming a good or service. The level of satisfaction is measured in units called UTILS.

    2. Cardinal school of thought and Ordinal school of thought.
    ✓ Cardinal utility believes in measuring the satisfaction levels in utils. This approach emphasizes that utility is measurable.
    ✓ Ordinal utility believes that the satisfaction level cannot be evaluated; however, it can be levelled.

    3. The demand for labour is an economic principle derived from the demand for a firm’s output. If a labour productivity increase, firm’s will demand more labour at each wage rate and the firm’s demand for labour itself will increase.

  3. Udeh Beatrice Chinaza says:

    NAME:UDEH BEATRICE CHINAZA
    REG. NO:2021/244045
    1) Utility is 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.
    Students choose to study because they want to pass their exams. We eat something because we’re hungry. We drive a car to reach a certain destination. We sleep to give our bodies some rest. Utility is involved in everything we do and we get satisfaction from consuming or using goods or services. This is what utility theory is concerned with: explaining individuals’ choices and measuring the satisfaction level from consuming a good or service.
    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. There is diminishing marginal utility
    iv. Total utility (TU) depends on the quantity consumed
    v. Money income of the consumer is held constant
    2) What is the concept of 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) Marginal Revenue (MR)
    This is the revenue that a firm gains from selling the last unit of output. It is closely related to the price of the good sold, and hence the demand for the good. If a good increases in demand, it pushes up the price and therefore, the firm will be willing to pay more to employ labour.
    Therefore the demand for labour depends upon
    The productivity of labour (MPP)
    The demand for the good – which determines the price and marginal revenue of last good sold.
    The wage rate, strictly this is the MC of labour.

  4. OBUO GRACE OHIUMA says:

    Name:OBUO GRACE OHIUMA
    Reg no: 2020/241933
    Department: Pure and Industrial Chemistry Email: graceobuo2019@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. 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.
    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. 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.
    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.

  5. Name:Ozokelue ogochukwu vivian Reg No:2021/244148. Department:Public administration and local government . Course code:Eco 101 says:

    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.

    2) I) cardinal
    II) ordinal
    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.

    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 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 demand for the firm’s output of goods and services decreases,in turn ,it will require less labour and its demand for labour will fall and less staff will be retained .
    This would shift the labor demand curve outwards.

  6. Name: Arthur Philip David
    Reg no: 2021/241939
    1.) The Elementary theory of utility is based on the fact that satisfaction which consumers derived from consumption of goods and services can be measure quantitative. As the consumer consumes more of a particular product,it will get to a point where utility starts to diminish.

    2.) I)Cardinal school of thought
    II) 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.Utility is measurable.
    The consumer is rational,there is diminishing marginal utility and total utility (TU) depends on the quantity consumed.

    ORDINAL SCHOOL OF THOUGHT:
    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

    3) The demand for pricing productive factor emphasizing on 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.

  7. NAME: EZEOGU SYSTUS CHIMUANYA B.
    REGISTRATION NUMBER: 2021/241332.
    COURSE: ECO 101(ASSIGNMENT).
    DATE: 7/03/2023.
    DEPARTMENT: ECONOMICS.

    1. Briefly discuss the Elementary theory of utility:
    Perspectively the utility of a good or service is determined by how much satisfaction a particular consumer obtains from it. Utility is not a quality inherent in the good or service itself.
    As a consumer consumes more and More of a good or service it’s marginal utility falls.
    However, economic utility of a good and service is important to understand because its directly influences the demand and therefore price of that good or service.

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

    Ordinal utility: This explains that the satisfaction level after consuming any goods or service cannot be scaled in numbers.
    However, these things cannot be arranged in the order of preference, it can also be seen as a concept of one good being More useful and desirable than others.
    Example: Obi gets more Satisfaction from consuming a wine compared to that of a mineral.
    Utility is ranked based on satisfaction.

    Cardinal utility:
    This explains that the satisfaction level after consuming any goods or service can be scaled in terms of countable numbers.
    Example Wine gives obi 68 utils of satisfaction whereas minerals gives him only 32 utils.
    Utility is measured based on utils.

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

    An economy can grow when the number of workers increases (i.e. employment increases) or when each worker produces more. Labour productivity measures the latter effect.

    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.
    Thanks in anticipation for your favorable response.

  8. Name:Onuigbo Thelma Ogechi
    Reg no: 2021/244661
    Email: ogechithelma14@gmail.com

    (1)Briefly discuss the elementary theory of utility.

    The elementary theory of utility is a fundamental concept in economics that explains how people make choices based on their preferences and how they maximize their satisfaction or well-being.
    According to this theory, individuals have preferences over different bundles of goods and services, and they choose the bundle that gives them the highest level of satisfaction or utility. Utility is the measure of satisfaction or pleasure that individuals derive from consuming goods and services.
    The theory of utility assumes that individuals are rational and that they aim to maximize their utility subject to their budget constraint. The budget constraint represents the limit on the amount of goods and services that an individual can consume given their income and the prices of the goods.
    The theory also assumes that individuals face diminishing marginal utility, which means that as they consume more of a good or service, the additional satisfaction or utility that they derive from each additional unit of the good or service decreases. This leads to the law of demand, which states that as the price of a good or service increases, the quantity demanded decreases, and vice versa.
    The theory of utility also gives rise to the concept of indifference curves, which are curves that represent all the combinations of two goods that provide the same level of satisfaction or utility to an individual. The slope of the indifference curve represents the rate at which an individual is willing to trade one good for another.
    Overall, the elementary theory of utility provides a framework for understanding how individuals make choices based on their preferences and how they allocate their limited resources to maximize their satisfaction or well-being.

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

    (i)The Cardinal school of thought
    It assumes that utility can be measured in numerical terms, and that these numerical values can be compared across different individuals and goods.
    There are five assumptions of the cardinal approach are total utility,money income of the consumer is held constant,there is diminishing marginal utility,the consumer is rational and utility is measurable

    (ii)The ordinal school of thought
    The ordinal approach of utility is a theory in economics that suggests that utility, or the satisfaction or happiness that a consumer derives from consuming a good or service, can only be ranked or ordered, but not measured in absolute terms. This means that economists can compare the utility that a consumer derives from consuming one good or service to the utility they derive from consuming another good or service, but they cannot assign a specific value to the utility itself.
    The ordinal approach of utility is often contrasted with the cardinal approach, which suggests that utility can be measured in absolute terms, allowing for precise comparisons of the utility derived from different goods or services. However, the cardinal approach has been largely discredited, as it is difficult to measure utility in a way that is consistent across individuals and over time.
    The ordinal approach of utility is a key concept in modern microeconomic theory and is used to analyze consumer behavior and preferences, as well as to explain market demand and the behavior of firm.

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

    The demand for productive factors, including labor, is determined by the production process and the level of output a firm wants to achieve. In general, firms will demand more labor when they expect to increase their output, and less labor when they expect to decrease output.

    The pricing of productive factors, including labor, is determined by the interaction of supply and demand. When the demand for labor increases, the price of labor (i.e., wages) will also increase. Conversely, when the demand for labor decreases, the price of labor will decrease. Similarly, when the supply of labor increases, the price of labor will decrease, and when the supply of labor decreases, the price of labor will increase.

    In the labor market, the demand for labor is influenced by several factors, including the productivity of labor, the price of other factors of production, and the level of demand for the firm’s output. For example, if a firm’s output requires more labor-intensive production methods, the demand for labor will increase, leading to higher wages. Similarly, if the price of other factors of production, such as capital, increases, the firm may substitute labor for capital, leading to an increase in the demand for labor and wages. Additionally, if there is an increase in the level of demand for the firm’s output, there will be an increase in the demand for labor and wages.

    The supply of labor is also influenced by several factors, including the level of education and training of the workforce, demographic changes, and government policies. For example, an increase in the level of education and training of the workforce can lead to an increase in the supply of skilled labor, leading to a decrease in wages for skilled labor. Similarly, demographic changes, such as an aging population, can lead to a decrease in the supply of labor, leading to an increase in wages.

    In summary, the demand for and pricing of labor in the labor market are determined by the interaction of supply and demand, which is influenced by several factors, including the productivity of labor, the price of other factors of production, the level of demand for the firm’s output, the level of education and training of the workforce, demographic changes, and government policies.

  9. Ohama Henry Chiemerie says:

    Reg No:10600712JA
    DEPARTMENT: PALG 100level

    1. Utility theory is an economic hypothesis that postulates the fact that consumers make purchase decisions based in the degree of utility or satisfaction they obtain from a given item. This means that the higher the utility level the higher the item will be prioritized in the consumer’s budget.

    2.The two school of thoughts are;
    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.

    B.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.

    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 productive factors affecting the labor market are;
    A.Labour supply and demand
    B.Minimum wage policies
    C.Working populace
    D.Economic regeneration initiatives

  10. Ifeanyi Blessed Ebube 2020/241358 says:

    1) Individual preferences inform the beliefs of utility theory. A theory in economics that tries to explain how people behave is based on the idea that people can always put their choices in order of preference. Preferences that appear to be ingrained in each individual will manifest differently. As a result, we can assert that individual preferences are inherent. By definition, any theory that proposes to capture preferences is an abstraction based on a few presumptions. Positive utility theory aims to explain the observed behavior and choices of individuals. In the field of economics, the distinction between a theory’s positive and normative aspects is crucial. There are those who contend that economic theories ought to be normative—that is, they ought to be prescriptive and ought to tell people what to do. Other people argue, frequently with success, that economic theories are intended to provide explanations for the observed behavior of market agents, which is positive in that sense. This is in contrast to a normative theory, which holds that people should act in a certain way. Instead, we can only infer preferences about individuals after observing their choices because the theory itself is positive. A utility function, a mathematical formulation that ranks the preferences of the individual in terms of the degree to which various consumption bundles provide satisfaction, can be used to analytically represent those preferences when certain restrictions are placed on them. We can therefore assume, in accordance with utility theory’s presumptions, that people acted as though they had a utility function.

    2) We have the cardinal school of thought and we have the 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 while 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.

    3) The Demand For And The Pricing Of Production Factors Being Emphasized On The Labour Market Has To Deals The Labor at Use, The Continuous Production Of The Products ( that is it’s availability), the supply to the market, and the consumers itself. The Labour Market Has It That The law of demand states that a higher price leads to a lower quantity demanded and that a lower price leads to a higher quantity demanded. So it also comes to the conclusion that the product price and demand is inter related which bring a huge rise or fall in the Labour market And it should be noted that Price is dependent on the interaction between demand and supply components of a market.

  11. ARUA PASCHAL UGOCHUKWU REG no: 2021/244116 says:

    1). Utility is the rightful satisfaction one derives from consumption of a product or the use of services. Utility can only be complete if the product from the manufacturer reaches to the final who is the last Chain of the distribution. Utility tries to explain the behaviour of consumers in an economy. Utility can be measured in units called utils.
    They are four types of utility which are the :
    place utility
    Time utility
    Form utility
    possession utility
    According to the school of thought utility is divided into two perspective views which are the
    Ordinal school of thought
    Cardinal school of thought
    Utility reaches a level it declines such that the consumer no longer feels or rather have the appetite or finance for buying or consumption of a product as the product no longer satisfies the consumer and they buy a lesser or no quantity of the product any longer making the demand for the particular product , in this case we say that the utility of the product is diminishing and this defines the concept of ” diminishing marginal utility”.
    They are also the
    Total utility
    marginal utility
    average utility
    This are also used in utility for it’s calculation.

    2). The two school of thought in utility are
    The ordinal school of thought
    The Cardinal school of thought

    The ordinal school of thought: this school of thought views that utility cannot be measured or scaled in numbers but that they can be levelled . It states that the level of satisfaction a consumer derives from the goods and services can only be arranged in preference.It deals with mostly assumptions and not measuring for basic facts of utility.

    The Cardinal school of thought: this school of thought views that utility always be measured and scaled in numbers. 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.

    3). . The demand for and pricing of productive factors in the labour market
    The demand for a factor of production, which is derived from the demand for the goods and services it is used to produce. 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.
    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 a firm or production organisation manufacturers goods ,the rate of the demand for the product will determine the productive factors the firm will implement or purchase in other to produce another batch of that product. If it turns out negative the firm will likely level up and indulge in several productive factors that will help them make profit at large in other to increase the demand for the product in the market.

  12. Madu Ugochi Juliet says:

    Name:Madu Ugochi Juluet
    Reg no:2021/246120
    Course:Eco 101
    Dept:Public administration and local government
    Faculty:social sciences

    1) Briefly discuss the elementary theories of utility.
    Utility is interested in people’s preferences or value and with assumption about a person’s preference in numerically useful ways.It can also be said as a theory postulated in economic to explain behavior of individual based on the promises people can constantly rank order their choices depending upon their preferences.

    2) Mention and discussion the different view of untility according to the two schools of though which u have been taught.
    A) Ordinal school of taught
    B)cardinal school of taught

    A) Ordinary school of taught states that
    Utility cannot be measured,satisfaction which a consumer services from the consumption of products cannot be measured numerically.The satisfaction of user goods can be ranked in order of preference but cannot be evaluated. While the

    B)Cardinal school of taught states that
    Cardinal utility determines the satisfaction of a commodity used by an individual and can be supported with a numerical value .It assumes that marginal utility decreases it diminishes with each extra unit of consumption known as law of diminishing marginal utility.

    The measuring trend for cardinal and ordinal utility is utils and ranks respectively.Utils is the unit of utility and rank determines the preference of a product compared to the other product in the market.

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

    Discussion related to the demand and pricing are usually called decisions economic reasoning and concept provides much of the theoretical foundation for marketing practice.
    Labor market is an economic function in an economy function with demand and supply of labor.In this market,the labor demand is firms demand for labour and supply.

  13. NAME: MADUABUCHI PRECIOUS CHIDINMA
    DEPARTMENT: ECONOMICS
    REG NO:2021/247447

    1) Utility can be defined as the amount of satisfaction derived from the consuming a good or service .it is used to determine the important or worth of a good or service

    2)The two schools of thoughts are
    A) cardinal school of thought and
    B)ordinal school of thought

    CARDINAL SCHOOL OF THOUGHT
    It stated that utility can be measured, satisfaction derived can be measured using figures which range from zero to infinity
    THIS SCHOOL OF THOUGHT ASSUMES THAT
    I) Utility is measurable: it assumes that satisfaction derived can be measured
    II) consumer rationality : it assumes that the consumer is rational, that means that given a choice he choose more rather than less because his objective is to maximize utility
    III) diminishing marginal utility: it assumes that satisfaction derived decreases as additional units of a commodity consumed increases .
    IV)Total utility depends on the quantity consumed
    V) Consumer income is limited to buying goods and services

    ORDINAL SCHOOL OF THOUGHT
    I) This states that utility can be measured but not in figures but can be ranked or put in order . The consumer here need to determine only the preferences ranking of bundles of commodity.

    ORDINAL SCHOOL OF THOUGHT IS BASED ON THIS ASSUMPTIONS
    I) Rationality: A consumer is a rational being . His goal is to maximize his total satisfaction
    II) utility is ordinal: it assumes that utility is measured by consumers evaluation that means by order of preference .
    III) Diminishing Marginal Rate of Substitution : The marginal rate of substitution is the rate at which a consumer is willing to substitute one commodity (X) for another (Y) so that his total satisfaction remains the same. This rate is given by ∆Y/∆X. The assumption is that ∆Y/∆X goes on decreasing, when a consumer continues to substitute X for Y.R.
    IV) consistency of choice
    V) Non satisfaction.
    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.
    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
    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.

  14. Ezeh Tobenna Chisom says:

    NAME: Ezeh Tobenna Chisom
    REG NO: 2021/244048
    EMAIL: ezeh1tobs@gmail.com

    1. Theory of utility, in economics, refers to the theories that seeks to explain an individual’s observed behavior when he/her purchases products and makes economic choices. The theory of utility cannot be full discussed without define its key focus, utility – utility can be defined as the satisfaction derived from the consumption of a good or service. In accordance to this definition, the observed behaviour in the theory of utility refers to satisfaction. The theory of utility is very important in economics, as it explains one of economic’s core principle, the demand theory.

    2. Over the year many economists have taken two paths in explaining the theory of utility, those paths are common referred to as the two school of thoughts in the study of utility. They are:
    a. The cardinal school of thought: This school of thought states that the level of satisfaction a consumer acquires after consuming any goods and services can be measurable and expressed in quantitative numbers, i.e. 2, 5, 28, 35, 174, called ‘utils’. Cardinal utility was propounded in the 19th century by Alfred Marshall
    b. The ordinal school of thought: This school of thought states that the level of satisfaction a consumer acquires after consuming any goods and services cannot be measurable and expressed in quantitative numbers, but can be ranked in other of preference. Ordinal utility was propounded in the 20th century by John R. Hicks and Roy G. Allen.

    3. Demand for labor is a concept that describes the amount of labour that an economy or firm is willing to employ at a given point in time. 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.
    Price of labour is a part of wage-bill or payroll that can be specifically and consistently assigned to or associated with the manufacture of a product, a particular work order, or provision of a service. Also, we can say it is the cost of the work done by those workers who actually make the product on the production line. It can be determined by the change in total cost after a unit of labour is employed, all time remaining constant. The price of labour is commonly controlled by the government through implementation of price ceilings and floors, price ceiling being the maximum price and price floor, the minimum price.

  15. Onyemenam Praise Toch Mmesoma: 2021/245847 says:

    1) Briefly discuss the elementary theory of utility.

    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.

    Type of utility;
    Time utility
    This is the satisfaction derived by a consumer from consuming a particular good or service at a particular time

    Form utility
    This is the transformation of goods from one form to another for the good to confer (a better) satisfaction when consumed. E.g, from floor to bread, orange to orange juice e.t.c.

    Place Utility
    This can be obtained through the process of making goods and services more easily available / accessible to potential consumers

    Possession Utility
    This refers to the satisfaction derived from the ownership of goods and services e.g owning a land, being a CEO of a company, making a dress etc

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

    Ordinal Utility
    This is a developed idea that individuals could order or rank the usefulness of various discrete units of economic goods.
    This conception of utility was not quantified, but a qualitative property of an economic good.
    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
    This is simple seen as an idea that states that utility can be measured.
    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

    Cardinal way of measurement includes;
    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.
    Total Utility = AU × QC (quantity consumed)

    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.
    Marginal Utility = ∆TU ÷ ∆C (change in consumption)

    Average Utility
    Average Utility (AU) is the amount of satisfaction a consumer derives from the consumption of a unit of a commodity.
    Average Utility = TU ÷ Total quantity consumed

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

    The Labour market like other goods market in the economy are governed by the force of demand and supply. The supply and demand for labour determines the wage or price paid for labour service. Like all prices, the price of labour (wage) depends on supply and demand

  16. Ezeh Tobenna Chisom says:

    NAME: Ezeh Tobenna Chisom
    REG NO: 2021/244048
    EMAIL: ezeh1tobs@gmail.com
    1. Theory of utility, in economics, refers to the theories that seeks to explain an individual’s observed behavior when he/her purchases products and makes economic choices. The theory of utility cannot be full discussed without define its key focus, utility. Utility can be defined as the satisfaction derived from the consumption of a good or service. In accordance to this definition, the observation in the theory of utility refers to satisfaction. The theory of utility is very important in economics, as it explains one of its key factors, the demand theory.

    2. Over the year many economists have taken two paths in explaining the theory of utility, those paths are common referred to as the two school of thoughts in the study of utility. They are:
    a. The cardinal school of thought: This school of thought states that the level of satisfaction a consumer acquires after consuming any goods and services can be measurable and expressed in quantitative numbers, i.e. 2, 5, 28, 35, 174, called ‘utils’. Cardinal utility was propounded in the 19th century by Alfred Marshall
    b. The ordinal school of thought: This school of thought states that the level of satisfaction a consumer acquires after consuming any goods and services cannot be measurable and expressed in quantitative numbers, but can be ranked in other of preference. Ordinal utility was propounded in the 20th century by John R. Hicks and Roy G. Allen.

    3. Demand for labor is a concept that describes the amount of labour that an economy or firm is willing to employ at a given point in time. 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.
    Price of labour is a part of wage-bill or payroll that can be specifically and consistently assigned to or associated with the manufacture of a product, a particular work order, or provision of a service. Also, we can say it is the cost of the work done by those workers who actually make the product on the production line. It can be determined by the change in total cost after a unit of labour is employed, all time remaining constant. The price of labour is commonly controlled by the government through implementation of price ceilings and floors, price ceiling being the maximum price and price floor, the minimum priced

  17. Ezema miracle oluebube. 2021/241316 says:

    Name: Ezema Miracle oluebube
    Reg No: 2021/241316
    Dept: Economics
    Course : Eco 101

    1). Elementary theory of utility is a positive theory that seeks to explain an individuals observed behaviour and choices. It bases its belief upon individuals preferences. it is a theory postulated in economics to explain behaviour of individuals based on the premise that people can consistently rank or order their choices depending on their preferences. we can thus state that individuals preferences are intrinsic.

    2). View of utility according to the two schools of thought
    a. Cardinal school of thought
    b. Ordinal school of thought

    a. Cardinal school of thought believes in measuring the satisfaction level in Utils. It explains that the satisfaction level after consuming any goods or services can be scaled in terms of countable numbers.
    example: pizza gives Sam 60 utils of satisfaction, whereas burger gives him only 40 utils of satisfaction.
    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 believes that the satisfaction level cannot be evaluated, however, it can be levelled. 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 burger.
    After consuming a given quantity of commodity the consumers satisfaction will be ranked based on satisfaction.

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

    When producing goods and services, businesses require labour and capital as inputs to their production process. Labour market factors drive the supply and demand for labour. If labour productivity increases, firms will demand more labour at each wage rate and the firms demand for labour itself will increase.
    The demand for these productive factors is influenced by the level of economic activity, the productivity of labour and the relative cost of labour when compared to capital inputs.
    Firms demand in the labour market while consumer supply the labour market. Demand for labour shows how many workers the firms are willing and able to hire at a given wage rate at a given time which is derived from the demand for a product or a service that labour produces.

  18. Udeh onyinyechi Josephine says:

    UDEH ONYINYECHI JOSEPHINE
    Reg number:2021/244152
    Faculty: social sciences
    Dept: Sociology and Anthropology
    Email: udehjosephine1o1@gmail.com

    Question 1
    ans: Utility theory is a theory in economics that emphasizes individuals choices. This theory explains the behavior of individuals based on the idea that people make choices based on preferences. Utility theory explains how individuals decisions and behaviors can change based on their preferences. The primary focus of the utility theory is that individuals will prefer decisions that provide the most utility for their given preferences. In some cases, measuring utility from a given decision may not be possible. However, this theory assumes that individuals behave as if they make a decision by assigning an imaginary number to it

    Question 2
    ans: There are basically 2 school of thought in the analysis of utility they are :-
    *Cardinal school of thought
    *Ordinal school of thought

    Cardinal school of thought:This 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
    *Utility is measurable
    *The consumer is rational
    * There is diminishing marginal returns utility
    *Total utility (TU) depends on the quantity consumed
    *Money income of the consumer is held constant

    Ordinal school of thought:Explains that the satisfaction after consuming a goods or service cannot be scaled in numbers,however , these things can be arranged in the order of preference. According to the ordinal theory, utility is a psychological phenomenal like happiness, satisfaction etc. It is highly subjective in nature and varies across individuals. Therefore,it cannot be measured in quantifiable terms.
    ASSUMPTIONS OF ORDINAL UTILITY
    *Rationality
    *Ordinal utility
    *Transitivity and uniformity of choice
    *Non-satiety
    *Diminishing marginal returns rate of substitution

    Question 3
    ans: the demand for and pricing of productive factors emphasizing on the labour market:
    demand for labour is the number of labours-hours an employer needs to hire at a given point in time based on different variables
    * factors affecting demand in a productive labour market are:
    *wages:
    if the wages goes up in a country,the demand for labour will go down accordingly. Therefore,some people argue that if the minimum wages go up ;many employers will be unable to pay their employees accordingly thereby creating less demand for labour
    *Marginal productivity:
    The demand for labour is a derived demand meaning that it hinges on the demand for the products/services the workers are producing.
    *Technology:
    technology has vastly changed the way people work.Technology disruptions happen often creating both positive and negative impacts for the labour market. These disruptions can increase the demand for some people while reducing the demand for others
    *Profitability of organisations
    organisations will be willing to recruit more people if their business is profitable.on the other hand , if the profitability suffers, they may be unwilling to recruit workers thereby reducing the demand for labour

  19. 1) utility is the amount of satisfaction derived from the consumption of a commodity at a particular time . it is the satisfying power of a commodity which is distinct from mere usefulness.

    2)* ordinal utility
    * cardinal utility

    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). 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.

    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.

  20. 1) utility is the amount of satisfaction derived from the consumption of a commodity at a particular time . it is the satisfying power of a commodity which is distinct from mere usefulness.

    2)* ordinal utility
    * cardinal utility

    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). 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.

    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.

  21. Joel chibuikem Kingsley says:

    Name: Joel chibuikem Kingsley
    Matric number:2021/244125

    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

  22. Amobi Ruth Nzubechukwu. Reg no:2021/243628.department:social science education. Unit: Education Economics says:

    1) Briefly discuss the elementary theory of utility

    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 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.

    Daniel Bernoulli is famous for founding the Utility Theory in the 18th century.

    Daniel Bernoulli

    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

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

    Cardinal Utility Economics Examples
    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.

    Ordinal Utility Economics Examples
    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.

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

    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.

    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 as you can see in Figure 1.

    demand for labor demand curve studysmarter
    Fig. 1 – Labor demand curve

    Figure 1 illustrates that if the wage rate decreased from W1 to W2 we would see an increase in employment level from E1 to E2. This is because it would cost less for a firm to hire more workers to produce its output. Thus, the firm would hire more, thereby increasing employment.

    Conversely, if the wage rate increased from W1 to W3, employment levels would fall from E1 to E3. This is because it would cost more for a firm to hire new workers to produce its output. Thus, the firm would hire less, thereby decreasing employment.

    When wages are lower, labour becomes relatively cheaper than capital. We can say that when the wage rate starts decreasing, a substitution effect might occur (from capital to more labour) that would lead to more labour being employed.

    Demand for labour as a derived demand
    We can illustrate derived demand with a couple of examples that include the factors of production.

    Remember: the factors of production are the resources used to produce goods and services. They include land, labour, capital, and technology.

    The demand for reinforcement bars is high due to their frequent use in the construction industry. Reinforcement bars are often made of steel; thus, high demand for these would also correspond to high demand for steel. In this case, steel demand is derived from the demand for the reinforcement bars.

    Assume (without considering the effects of COVID-19) that there is an increased demand for air travel. This will inevitably lead to an increase in demand for airline pilots since airlines will need more of them to supply the growing demand for air travel. The airline pilots’ demand in this scenario will be derived from the demand for air travel.

    Derived demand is the demand for a factor of production that results from the demand for another intermediate good. In the case of labour demand, it is derived from the demand for a product or a service that labour produces.

    A 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.

    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.

    The marginal productivity theory of demand for labour
    The marginal productivity theory of demand for labour states that firms or employers will hire workers of a particular type until the contribution made by the marginal worker is equal to the cost incurred by having hired this new worker.

    We have to assume that this theory is applied to wages in this context. The wage rate is determined through the forces of demand and supply in the labour market. These market forces ensure that the wage rate is equal to that of the marginal product of labour.

    However, the theory of diminishing marginal returns assumes that the marginal worker provides less contribution to the work than that of their predecessor. The theory assumes that the workers are relatively the same, meaning they are interchangeable. Based on this assumption, many workers that are hired receive the same wage rate. However, if the firm were to hire workers based on the marginal productivity theory, the firm would then maximise its profits. This can only happen if the hired marginal workers contribute more in value than the costs incurred by the firm.

    The determinants of the elasticity of demand for labour
    The elasticity of demand for labour measures labour demand’s responsiveness to a change in the wage rate.

    There are four main determinants of the elasticity of demand for labour:

    The availability of substitutes.
    The elasticity of demand for the products.
    The proportion of labour cost.
    The elasticity of supply of substitutes inputs.

  23. Ogbedeh Chukwudalu Frances says:

    Name: Ogbedeh Chukwudalu Frances
    Reg no:2021/241352
    Email address: franceschukwudalu@gmail.com

    1: Briefly discuss the elementary theory of utility:
    Utility may be defined as the satisfaction that a consumer derives from consuming a commodity or services at any particular time.

    2: Mention and discuss the different views of utility according to the two schools of thoughts which you have been taught:
    A:The cardinal school of thoughts: In this school of thought, utility can be measured using numbers ranging from zero to infinity.
    B:The ordinal school of thoughts: In this school of thought, utility can be ranked in scale of preference but not measured. It considers two goods X and Y.

    3: Explain the demand for and pricing of productive factors emphasizing on the labour market :
    Answer: The demand for any factor of production, such as labour, physical capital or land is a derived demand because it aries not from the intrinsic utility provided by the factor but because of the value placed on the production it produces by consumers.
    The theory of factor pricing deals with the determination of the share prices of four factors of production, namely land,labour, 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.

  24. Name:Egwu Angela Onyinyechi. Reg no: 2020/242236 says:

    Eco 101 quiz
    1. Briefly discuss the elementary theory of utility.
    It is a theory postulated in economics to explain behavior of individuals based on the premise people can consistently rank, order their choice depending upon their preference.
    2. Mention and discuss the different views of utility according to the two school of thoughts which you have been thought.
    a) Cardinal utility.
    b) Ordinal utility.
    Cardinal utility believes in measuring the satisfaction level in utils.
    Ordinal utility believes that the satisfaction level cannot be evaluated, however, it can be leveled .
    3. Explain the demand for and pricing of productive factors emphasizing on the labour market.
    Demand for labour discribes the amount and market wage rate workers and employers settle upon at any given moment.
    The theory of factor pricing deals with the determination of the share prices of four factors do production, namely, land, labour, capital and enterprise.

  25. Asuzu Chinwendu Emmanuella says:

    Department: Economics.
    Reg no: 2021/241941.

    Question
    1. Briefly discuss the elementary theory of utility.
    Utility refers to the ability of goods or services to satisfy unlimited human wants.The elementary theory of utility is an economic theory that states that a consumer’s utility, or satisfaction, from a good or service is a function of its price and the quantity of it that the consumer is able to purchase. This theory suggests that the consumer will attempt to maximize their satisfaction by purchasing the most quantity of a good or service at the lowest price. This is known as the law of diminishing marginal utility, which states that the more of a good or service that a consumer purchases, the less additional satisfaction the consumer will receive from each successive purchase.

    2. Mention and discuss the different views of utility According to the two schools of thoughts.
    i. The cardinal school of thoughts.
    ii. The ordinal school of thoughts.

    CARDINAL SCHOOL OF THOUGHTS.
    The Cardinal School of Thought is based on the idea that utility can be measured in terms of a cardinal number, such as a quantity. According to this view, utility is seen as a quantitative measure of a person’s satisfaction obtained from a good or service. This school of thought suggests that utility can be measured in absolute numbers, such as 30, 40, or 50. It also suggests that a person’s utility from a good or service can be compared to the utility they would receive from another good or service, by calculating the difference in absolute numbers.

    ORDINAL SCHOOL OF THOUGHTS.
    The Ordinal School of Thought is based on the idea that utility is a measure of subjective satisfaction, and cannot be measured in cardinal numbers. This school of thought suggests that utility cannot be compared quantitatively and is instead viewed in terms of preference. Under this view, utility is seen as a qualitative measure of satisfaction and cannot be distilled down to a single cardinal number. Instead, individual preferences are used to rank and measure utility.

    3. Explain the demand for and pricing of productive factors emphasizing on the labour market.
    The demand for productive factors, such as labour, is determined by the demand for the goods and services produced by these factors. In general, when demand for a good or service increases, the demand for labour to produce it also increases. This leads to an increase in the price of labour, as businesses have to pay more to attract workers.

    The demand for labour is also affected by the supply of labour. When the supply of labour increases, businesses can hire more workers even if there is no increase in the demand for their products. This puts downward pressure on the price of labour, as employers can pay less to attract workers. On the other hand, when the supply of labour decreases, businesses have to pay more to attract workers, resulting in an increase in the price of labour.

    The pricing of labour is also affected by the overall economic conditions. In a period of economic growth when businesses are expanding, the demand for labour typically increases, which leads to an increase in the price of labour. On the other hand, during a recession when businesses are shrinking, the demand for labour decreases, which puts downward pressure on the price of labour.

  26. Acholonu Chidubem Wisdom says:

    Name: Acholonu Chidubem Wisdom
    Reg no: 2021/243697

    1) Utility theory is based on the fact that satisfaction which consumers derive from consumption of goods and services can be measured quantitatively

    2) Different views of utility are cardinal utility and ordinal utility. The cardinal utility believes in measuring the satisfaction level in units and the ordinal utility believes that the satisfaction level cannot be evaluated; however it can be leveled.

    3) 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 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 it’s demand for labor will fall, and less staff will be retained.
    Factor pricing is associated with the prices that an entrepreneur pays to avail the services rendered by the factors of production.

  27. Raymond Chiamaka Sylvia says:

    Name: Raymond Chiamaka Sylvia
    Reg no:2021/243700
    Email: sylviachiamaka208@gmail.com
    1.The elementary theory of Utility
    Utility can be defined as the satisfaction that a consumer derives from consuming a commodity or service at a particular time.
    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.
    Utility in Economics was first coined by the noted 18th century Swiss mathematician,Daniel Bernoulli.
    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. Various school of thought differ as to how to model economic Utility and measure the usefulness of a good or service.
    Forms of utility.
    (a)Form utility is an economic concept that identifies the value obtained by consumers from products designed in the most convenient ways for them. Form utility also the satisfaction gotten from the transformation of raw materials into finished goods.

    (b)Time utility is the satisfaction derived when a consumer can access a good or service and hoe quickly they can use it.

    (c)Possession utility is the satisfaction derived from a good because the consumer own the good and can use it freely.
    Example: Owning a car

    (d) Place utility is the utility of a product by the convenience of its location to the consumers or buyers.Place utility is the utility of a product by the convenience of its location to the consumers or buyers.

    2 The different views of utility.
    A.Cardinal Utility.
    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.
    Utility is measured based on utils.
    It is less practical.
    This theory was applied by Prof. Marshall

    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.
    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.
    This theory was applied by Prof. J R Hicks.

    3.Demand for productive factor in the labour market.
    Demand for labour means the number of workers that the employers are willing and able to hire at the going wage rate at a given period of time.
    The demand for labour is different from the demand for a commodity. Labour is not desired for the mere joy of having it,but rather because it is used to produce goods and services that the consumer want.This demand for labour is therefore said to be derived,which depends largely on demand for goods and services.
    A change in the demand for goods and services will also change the demand for labour.Example,an increase in the demand for houses,will increase or decrease the demand for carpenters and bricklayers .The demand for labour depends on the following factors:
    1.The value of marginal product of labour,the amount of money they will receive if the additional output is sold.This amount received is equal to the additional output multiplied by the price of the product.
    2.Another consideration is the marginal revenue product of labor (MRPL), which is the change in revenue that results from employing an additional unit of labour, 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 labour.

    3b.Pricing of Productive factor in the labour market.
    Similar to a goods market, wage rate in a labour market is determined by the intersection of demand for labour and supply of labour. The rate at which the demand equals the supply is called the equilibrium wage rate. Corresponding hours of labour are demanded and supplied in the labour market at the equilibrium wage rate.

  28. Abaligwe favour iheoma says:

    Name- Abaligwe favour Iheoma
    Course- Eco 101 Assignment
    Department- Biochemistry
    Registration Number- 2020/241486
    Email address- favourabaligwe@gmail.com

    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.

    Answer No 1
    The elementary theory of utility is an economic theory that explains how individuals make decisions about what goods and services to consume, based on their preferences and the constraints they face. Individuals seek to maximize their satisfaction or happiness, known as utility, by making rational decisions about what to consume given their income and the prices of goods and services. The theory also includes the law of diminishing marginal utility, which explains that as an individual consumes more of a good or service, the additional satisfaction or happiness they derive from each additional unit decreases

    Answer No 2
    a. Cardinal Utility
    b. 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.

    Answer No 3
    The demand for productive factors refers to the demand for the resources that are used in the production of goods and services, such as labor, capital, and land. The pricing of these factors is determined by the supply and demand in their respective markets.
    In the labor market, the demand for labor is determined by the marginal productivity of labor, which is the additional output that is produced by hiring an additional unit of labor. Employers will hire workers up to the point where the marginal productivity of labor is equal to the wage rate. This means that if the wage rate increases, the demand for labor will decrease, as it becomes more expensive for employers to hire workers.
    The supply of labor, on the other hand, is determined by the number of people who are willing and able to work at a given wage rate. This is influenced by factors such as education and training, demographics, and the availability of alternative sources of income. When the supply of labor increases, the wage rate tends to decrease, as there is more competition among workers for available jobs.
    The equilibrium wage rate in the labor market is the wage rate at which the quantity of labor demanded equals the quantity of labor supplied. This is the point where the marginal productivity of labor is equal to the wage rate, and the market is in a state of balance.
    In summary, the demand for and pricing of productive factors in the labor market are determined by the marginal productivity of labor, the supply of labor, and the equilibrium wage rate. This market operates like any other market in that it is subject to the laws of supply and demand.

  29. 1. First of all, Utility is an economic term referring to the satisfaction received from consuming goods or services
    The economic utility of goods and services is important to understand, because it directly influences demand and therefore the price of that goods or services

    2. We have the cardinal school of thought
    We agave the ordinal school of thought

    The cardinal school of thought : This approach comprises 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 ordinal school of thought : The approach to consumer’s utility states that the utility satisfaction cannot be measured in exact numbers but can only be ranked or put in order.

    3. If labour productivity increases, firms will demand more labour at each wage rate and the firm’s demand for labour itself will increase

  30. 1. The economic utility of goods and services is important to understand, because it directly influences demand and therefore the price of that goods or services

    2. We have the cardinal school of thought
    We agave the ordinal school of thought

    The cardinal school of thought : This approach comprises 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 ordinal school of thought : The approach to consumer’s utility states that the utility satisfaction cannot be measured in exact numbers but can only be ranked or put in order.

    3. If labour productivity increases, firms will demand more labour at each wage rate and the firm’s demand for labour itself will increase

  31. 1. The theory of utility is the amount of satisfaction that a consumer derives from the consumption of goods and services at a particular time.
    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 overtime.
    Utility is grouped into four types which are; Form utility, Time utility, Place utility, and Possession utility.

    2. The difference views of utility are:
    a. Cardinal utility
    b. Ordinal utility

    • Cardinal utility is a quantitative approach to measuring utility. it presents the utility of something as a fixed number- It is an exact measure of utility. Example: a bunch of 20 bananas can be said to have a cardinal utility of 20, whereas a bunch of 10 bananas 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.it captures which good or service is better, not how much better it is. 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. Therefore, Ordinal utility is a qualitative approach to measuring utility.

    3. When producing goods and services, businesses require labour and capital as inputs to their production process. The demand for labor is an economic principal 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 demand for the firm’s output of goods and services decreases, in turn, it will require less labour and its demand for labour will fall, and less staff will be retained.
    Labour market factors derive 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.

  32. Omeje Deborah ifebuche says:

    BRIEFLY DISCUSS THE ELEMENTARY THEORY OF UTILITY

    Definition: Utility theory is an economic hypothesis that postulates the fact that consumers make purchase decisions based in the degree of utility or satisfaction they obtain from a given item. This means that the higher the utility level the higher the item will be prioritized in the consumer’s budget.

    What Does Utility Theory Mean?
    This theory states that consumers rank products in their minds whenever they are facing a purchase decision. These ranking function drives their budget allocation, which means that resources are poured into the purchases that will bring the highest degree of satisfaction. It is assumed that individual budgets are limited and therefore there is a limited amount of goods or services that can be purchased, taking this into account, an individual will weigh which of the options currently available within the open market is the best suit to fulfill his current set of needs or desires.

    In these cases, preferences also play a key role and these can be defined as a set of predispositions that each individual possesses towards certain brands or products by elements such as colors, shapes, tastes or smells. Finally, there are four essential types of utility and these are form utility, time utility, place utility and possession utility.

    Example
    Harold is a 45 year old computer engineer that was recently hired by a company called Tech Mogul Co. which is a firm that provide security solutions for information systems, mostly to the banking industry. Harold is considered to be a very sophisticated person who enjoys luxurious accessories and gadgets. His salary is big enough to allow him to purchase such items and he is normally up to date with new technological devices. Recently, Harold was presented with the new version of the smartphone he currently owns. Tho he has a phone already the satisfaction he gets from getting this new version is more.

    MENTION AND DISCUSS THE DIFFERENT VIEWS OF UTILITY ACCORDING TO THE TWO SCHOOLS OF THOUGHT WHICH YOU HAVE BEEN TAUGHT.

    2. There are basically two school of thought in the analysis of utility and they are:
    *Cardinal school of thought
    *Ordinal school of thought

    CARDINAL APPROACH:
    This approach emphasizes that utility is measurable. That is, after consuming a given commodity the consumer can simply evaluate his satisfaction through the use of figures which ranges from zero to infinity.

    ASSUMPTIONS OF CARDINAL APPROACH
    I. utility is measurable
    ii. The consumer is rational
    iii. There is diminished marginal utility
    iv. Total utility (TU) depends on the quantity consumed.
    v. money income of the consumer is held constant

    ORDINAL UTILITY APPROACH
    It 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 whenever the commodity derives more or less or equal satisfaction when compared to another.

    ASSUMPTION OF ORDINAL UTILITY APPROACH
    1. RATIONALITY: It is assumed that the consumer is rational which aims at maximizing his level of satisfaction for given income and prices of goods and services, which he wishes to consume.
    2. ordinal utility: The difference curve assume that the utility can only be expressed ordinally. This means the consumer can only tell his order of preference for a given goods and services.
    3. Transitivity and consistency of choice : The consumer’s choice is expected to be either transitive and consistent.
    4. No satiety: It is assumed that the consumer has not reached the satisfaction point of any commodity and hence, he prefers larger quantities of all commodities.
    5. Diminishing marginal rate of substitution (MRS): The marginal rate substitution refers to the rate at which the consumer is ready to substitute one commodity (A) for another commodity (B) in such way that his total satisfaction remains unchanged. The MRS is denoted as DB/DA goes on diminishing A for B.

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

    3. Demand for and pricing of productive factors
    The marginal productivity theory came under severe criticism of modern economist on the ground, that it ignores that supply sides of a factor of production besides many other weak points.
    According to the theory just as the price of a commodity which is determined by the forces of demand and supply, similarly, the prices of a factor of production is also determined by the demand of that factor and it’s supply.
    DEMAND FOR A FACTOR OF PRODUCTION
    The demand for a factor is not a direct demand but it is an indirect demand or derived demand. The demand for labour, for example is not demand for labour itself . it is infact, demand for goods and services which labour produces. Thus when demand for goods increases, the demand for the factors which produces those goods would also rise.

    SUPPLY OF A FACTOR OF PRODUCTION
    The supply of a factor of production depends upon the number of factors. Let’s take labour for example the supply of labour depends upon the size and composition of population, it’s geographical and occupation of population etc . But one thing that’s is generally true is that more labour would be offered in the market when wages are higher.

    CRITICISM ON DEMAND AND SUPPLY THEORY

    The theory is criticized on the basis of some of it’s weak assumption which is given as :
    1. The aspect of increasing return of the theory distribution or factors pricing is completely ignored.
    2. As the factors of production are not close or complete substitutes of each other, therefore they cannot be substituted for another.
    3. Homogeneity is all units of a factor of production is not possible.
    4. Prevalence of perfect competition in both factors of production market is not correct because in the real world it does not prevail

  33. Udeogalanya Doris Oluebube says:

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  34. Udeogalanya Doris Oluebube 2020/246122 says:

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  37. OKORO ROSELYN CHISOM says:

    The elementary theory of utility in review:

    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 utility to satisfy human wants. The concept of utility is used to express consumer’s 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’s behaviour theories, which assume that consumers will strive to maximize their utility with the resources available to them.

    2. The different views of utility by the two school of thoughts can be discussed below:
    A. Cardinal school of thought
    B. Ordinal school of thought

    A. The Cardinal school of thought
    The Cardinal school of thought emphasizes that utility is measurable. This means that the quantity of goods and services that satisfy the need of a consumer can be evaluated through the use of figure ranging from zero to infinity.

    There are five assumptions of the Cardinal school of thought:
    1. Total utility (TU) depends on the quantity of goods and services
    2. Money income of the consumer is held constant.
    3. There is diminishing marginal utility (MU)
    4. The consumer is rational
    5. Utility is measurable

    The assumptions are derived from the concept of Total utility, Marginal Utility, and Average utility.

    B. Ordinal school of thought
    The ordinal school of thought requires that consumers make a scale of preference, by choosing between the various commodity that gives them the same level of satisfaction. This approach assumes that utility can be ranked at various levels of consumptions. This approach makes use of indifference curve ( a curve that indicates the levels of satisfaction attained by a consumer from the consumption of two commodities). A combination of indifference curve is known as indifference map.

    3. The demand for Labour
    The demand for any factor of production is not a direct demand but an indirect or derived demand.
    The demand for Labour is not the demand for Labour itself but infact,the demand for goods and services Which the labour produces. Thus, when the demand for goods increases, the demand for the factors which produce those goods would also rise. If demands for good is elastic, the demands for the factors will also be elastic and vice versa. 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. If the goods are being sold at a higher prices, the demand for the factors would also be higher.
    More of labour would be offered in the market where wages are higher compared to what is being offered at lower wages. 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 prices 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.

  38. Faculty: Social Sciences Dept: PALG Name:Ugwuanyi Constance Chisom Reg no: 10714473FD says:

    Theory of utility: utility theory is based on the fact that satisfaction which consumers derived from consumption of goods and services can be measured quantitatively. Utility theory also bases it belief on individuals’ preferences. It is a theory that explain human behavior based on the premise people can consistently rank order their choices depending on their preference. Utility theory pertains to the value or worth of a certain good, service, or item. It suggests that goods, services, or items can be ranked according to their usefulness. The utility of an item tends to be closely correlated to it’s price. An item like gold, which is very useful and this has great utility (combined with it’s scarcity), is very expensive.

    The two school of thought:
    1.Cardinal utility: cardinal utility is where the satisfaction derived from consuming a product can be expressed numerically. It is the idea that satisfaction can be directly observable, measurable, and be given a value or it can be expressed in quantitative numbers. It is used by customers to know how many things used in numbers or quantity to get desired degree of satisfaction after consumption of goods and services. Cardinal utility measurements are done in utils unit.

    2.Ordinal utility: ordinal utility expresses the utility of a commodity in terms of ‘less than’ or ‘more than’. It is used in economics as a function to determine preference of satisfaction level derived by customer after consumption of goods and services. The preference of satisfaction derived by customers are always represented without statistical number. Customers used percentage and other characters of goods and services to determine preference of one goods over another product, it can’t be evaluated numerically. It used ranking of goods and services according to customers preference of needs and demands.

    3. The demand for and the pricing of productive factors emphasizing on the labour market:
    When producing goods and services, businesses require labour and capital as inputs to their production process. The demand for labour is derived from the firm’s output. That is, if demand for a firm’s output increases, the firm will demand more labour, thus hiring more staff. Factor pricing is associated with the prices that an entrepreneur, firm’s or businesses pays to avail services rendered by the factor of production ( in this case, it’s labour). Labour market factors drive the supply and demand for labour. Those seeking employment will supply their labour in exchange for wages. Businesses or firms demanding labour from workers will pay for their time and skills after pricing the wages and concluded on an agreed wages rate.

  39. Nnamani Julieth Obianujunwa 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 Utility definition in economics is derived from the concept usefulness.
    Daniel Bernoulli, a Swiss mathematician, in 18th century 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.
    Furthermore, the abstract measurement of utility is another key concept of the theory. Utility is also related to a consumer, depending on the time, place, form e.t.c
    2. (a) Cardinal school of thought
    (b) Ordinal school of thought

    CARDINAL SCHOOL OF THOUGHT: This approach emphasizes that utility is measurable, That is after a 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.
    According to Bernoulli and other economist, utility is modeled as a quantifiable or cardinal property of the economic goods that a person consume. To help with this quantitative measurement of satisfaction economists assume a unit known as a “Util’ . Util represent the amount of psychological satisfaction a specific good or service offers to a person and it helps to treat economic theory and relationship using mathematical symbols and calculations.
    ORDINAL SCHOOL OF THOUGHT: The Ordinal Utility approach to consumer’s utility analysis states that utility or satisfaction cannot be measured in exact numbers but can only be ranked or put into order. This approach shows that pleasure is completely a psychological element and it cannot be expressed in numbers.
    In ordinal approach, goods are ranked in order of priority.
    The Ordinal Utility theory of consumer behavior is usually called Indifference curve analysis as indifference curves are it’s main analytical tool.

  40. Name; Ezeakonobi Chidimma Rosemary. Reg number: 2020/241137. Dept: Pure and industrial chemistry. Faculty: Physical sciences says:

    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.

  41. NDUBUISI CHIAMAKA JULIET says:

    NAME: NDUBUISI CHIAMAKA JULIET
    REG. NO: 2021/243519
    DEPARTMENT: NURSING SCIENCE

    **ANSWERS*
    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.
    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. 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.

    2. There are basically two schools of thought in the analysis of utility and they are as follows:
    *** 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: the ordinal school of thought emphasizes that utility/satisfaction cannot be measured in exact numbers but can only be ranked or put into order.

    3. 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.

  42. Chigozie Nmeso-oma Jessica says:

    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 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: 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 Examples
    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.

    Ordinal Utility Economics Examples
    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.

    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.

    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. 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. Consumers’ utility increases as the quantity consumed increases but not at equal rate because consumer has a saturation point in the consumption of particular commodity at a given time.
    AVERAGE UTILITY: This derived by dividing total utility by

    the units of the commodity consumed. That is, it 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 the total utility as a result of the consumption of additional unit of a commodity. MU = ∆TU/∆Q

    THE LAW OF DIMINISHING MARGINAL UTILITY

    The law of diminishing marginal utility states that, other things being equal, the marginal utility of 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 decrease in satisfaction may set in as more and more bottles of beer are consumed until he may be unable to consume anymore

    UTILITY MAXIMIZATION
    Utility maximization is also known as equilibrium of the consumer. A point where a consumer derives maximum satisfaction when his marginal utility equates the price of the commodity consumed. That is, the additional utility derived from the consumption of additional commodity is equal to price of the commodity.

    In the case of one commodity, a consumer will maximize his satisfaction in the consumption of a particular commodity when the MU of that commodity equals the price of that commodity, eg MUx = Px

    In the case of two or more commodities, a consumer is said to be in equilibrium or maximizes his utility when the ratio of MU of the last unit of the commodities consumed should be equal to the ratio of the price. Alternatively, a consumer’s utility is maximized when the MU per amount spent on a product is equal to the MU per amount spent on any other product, as stated below:

    Mux/Px = Muy/Py = MUz/Pz

    where MUx = MU of commodity X

    Px = Price of commodity X

    MUy = MU of commodity Y

    Py = Price of commodity Y

    MUz = MU of commodity Z

    Pz = Price of commodity Z

    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.

    Common Reasons for a Shift in Labor Demand

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

  43. Matthew ozioma precious says:

    NAME: MATTHEW OZIOMA PRECIOUS
    REG NO: 2021/242777
    DEPARTMENT: EDUCATIONAL FOUNDATION
    UNIT: SPECIAL EDUCATION/ECONOMICS
    COURSE CODE: ECO 101

    1) Briefly discuss the elementary theory of utility.

    ANSWER:
    Utility as they say is satisfaction that a consumer derives from consuming a commodity or service at a particular time.
    It should be noted that any commodity or service that possesses utility is useful to the consumer. Usefulness of a commodity or service is a relative term, meaning that what is useful to MR A may not be useful to MR B.

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

    ANSWER:
    The different views of utility According to two schools is
    a) Cardinal school of thought: this particular school of thought State that utility can be measured ranging from zero – infinity. And they have basic assumption which is:
    Utility is measurable
    It assumes that consumers are rational
    It assumes that there is a concept called diminishing marginal utility.

    b) Ordinal school of thought: this Ordinal school of thought says that utility can be ranked not measured.

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

    ANSWER:
    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.

  44. (1). utility is simply the satisfaction one derives from consuming a product to satisfy human wants.

    (2). Cardinal school of thought: in the Cardinal school of thought utility can be measured using Numbers.
    Ordinal school of thought: utility can only be ranked and cannot be measured.

    (3). Labour market factors derive the supply and demand for labor.Those seeking employment for wages , business es demanding labor from workers will pay for their time and skills.

  45. Obu Nneka Anthonia says:

    1.Elementary theory of Utility
    Utility is the ability of goods and services to satisfy the unlimited human wants.this an also be the satisfaction,pleasure and fulfillment an individual gets from the consumption of goods and services.the concept of utility is to express consumers taste and preferences.
    There are four types of utility;
    -Time utility:This is the satisfaction derived by a consumer from goods and services at the particular time.A commodity doesn’t satisfy our needs all the time. Time utilities
    Is always High in times of scarcity.
    -place utility:This is the ability of goods and services to satisfy consumers needs within a location and it is a function of channel of distribution and the physical location of where the goods and services are sold.For example a bookshop as no business being close to a construction sites, it should be close to the Citadel of learning for consumption
    -form utility:This is the transformation of goods and services from one phone to another. When goods and services are being transformed to the needs and desires of the consumer it leads to an increase added value for example flour cannot be consumed directly until It is transformed to Cake, bread etc.
    -possession utility: this is a satisfaction derived from the ownership of goods and services services. it’s explains the benefits one derives from owning and using certain products. The more useful a products is to an individual When owned The higher the possession utility.
    2.School of thought in utility
    -Cardinal school of thought:This school of thought shows that utility is measurable i.e the quantity of goods and services consumed by consumer for the satisfaction of their needs can be a evaluated using figures ranging from zero to infinity. There are five assumptions of cardinal Approach which are Total utility, money income of the consumer is held constant, there is diminishing marginal utility, the consumer is Rational,Utility is measurable
    -ordinal school of thought:Ordinal approach requires that’s a consumer makes a scale of preference By choosing between the various commodity that gives the same level of satisfaction.This approach assumes that utility can be ranked at various levels of consumption.This assumption make use of an indifference Curve(The curve that indicates the level of satisfaction attained by a consumer for consuming two commodities
    3.Demand for factors of production
    Demand for a factor of production is not a direct demand but an indirect or derived demand.Demand for labor is not demand for labour.when demand for good increases,the factor which produces goods and services also increases.if demand for good is elastic,the factor which produces the goods and services will be elastic.similarly when the demand for good and service is inelastic,the factor which produces the goods and services will also be inelastic.
    When more of a factor is employed,the marginal productivity is likely to fall hence the demand and price are also likely to become lower.

  46. Asiegbunam destiny ebubechukwu says:

    Name: Asiegbunam destiny ebubechukwu
    Matric number:10284348DA

    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

  47. Ikechukwu Emefu Stephen 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 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 view of utility?
    A)Ordinal utility: refers to the concept of one good
    being useful or desirable than the other.
    B)Cardinal utility: is the idea of measuring economic value through imaginary units known as
    “utils”.
    C)Marginal utility: is the utility gained by consuming
    an additional unit of a service or goods.
    3)Explain the demand for labour and pricing of emphasizing markets?
    A) The concept of the labour market can be viewed as a factor market. Factors market provides a way for firm 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.
    B)Labour productivity measures the hourly output of a country’s economy. Specifically, it charts the amount of real gross domestic product (GDP) produced by an hour of labor. Growth in labor productivity depends on three main factors: saving and investment in physical capital, new technology, and human capital.

  48. Chike-ijei chiwendu victoria says:

    Name: Chike-ijei Chiwendu Victoria
    Course: Economics
    Reg no:2021/243693
    Email: chiwenduchikeijei@gmail.com
    (1) Utility is the satisfaction a consumer derives 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 to express a 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
    (2)i the cardinal school of thought
    ii the ordinal school of thought
    *The cardinal school of thought states that utility can be measured using numbers ranging from 0 to infinity.it means u can assign certain figures as the utility u derive when consuming a particular product.it can be measured in utils.
    *The ordinal school of thought states that the level of satisfaction a consumer obtains after consuming various commodities cannot be measured in numbers but can be ranked/arranged in the order of preference
    (3)A 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 and services.
    Prices play a central role in the efficiency story.producers and consumers rely on prices as signals of the cost of making substitution decisions at the margin.

  49. Utility may be defined as the satisfaction that a consumer derives from consuming a commodity or service at any particular time. In other words, utility refers to the amount of satisfaction a person derives from the consumption of a commodity or service at a given time.
    It should be noted that any commodity or service that possesses utility is useful to the consumer. Usefulness of a commodity is a relative term, meaning that what is useful to Mr A may not be useful to Mr B.
    The different views according to the two school of thought is Cardinal and Ordinal Utility.
    Cardinal utility is measured using number from 0_infinity,it makes consumers rational when buying or pricing a goods,it has a concept of diminishing marginal utility and it holds your money income constant.
    Ordinal 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.
    Labour market is defined as a market in which buyers and sellers of labour are in close contact during which the wages and other conditions of services are determined and agreed upon.
    The demand for and pricing of a productive factor which is labour market implies that in Nigeria,we use our country as an example,if the demand for labour market is high then the price will also be high but if it is low,the price will also decrease and vice versa.

  50. Okafor Chike Charles says:

    Name: Okafor Chike Charles
    Reg No: 2021/241351
    Email: okaforchike2005@gmail.com

    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
    a. 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. 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.

  51. Angel chiamaka Nwosu says:

    Name: Angel Chiamaka Nwosu
    Reg No: 2017/249536
    Email: angelapaul230@gmail.com

    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
    a. 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. 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.

  52. Joseph Emmanuel Nnamdi says:

    Name: Joseph Emmanuel Nnamdi
    Reg no: 2021/246117
    email: emmanueljos1929@gmail.com.

    1) Briefly discuss the elementary theory of utility.
    2) The term ‘utility’ refers to the amount of satisfaction derived from the consumption of a community at a particular time. The utility of a tin of milk is the amount of satisfaction derived from consuming it.Any commodity that has the power to satisfy human wants is said to possess utility.
    3) A number of things should be noted about utility.
    (I).utility is not the same as usefulness. something may be useful but it may not possess utility at a particular time for an individual.For example. water is essential to man but it possesses no utility as far as a drowning man is concerned.it does not satisfy his want.
    (ii). Utility has no ethical significance.
    something may be bad but may still possess utility for an individual, while something which is good may not possess utility from individual.
    2) Mention and discuss the different views of utility according to the two schools of thoughts which you have been taught.
    a).The cardinal school of thought.
    The cardinal utility school of thought argues that the utility of a community can be measured. Some economists belong to this school of thought argue that utility can be measured subjectively in unity called ‘utils’. the cardinal utility concept is based on the following assumption.
    1. Concept of rationality. The consumer is rational and therefore it is to maximize utility from is expenditures.
    2. Diminishing marginal utility. utility of a commodity decreases, with increased consumptionn of that commodity.
    b.Ordinal utility
    economist who belongs to this school argue that it is not possible to measure utility. They opin 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 boundle without specifying exact units of utility.

    3) Explain the demand for and pricing of productive factors emphasizing on the labour market.
    Labour Market;
    Labour market like other growth markets in the economy are governed by the force of demand and supply. The supply and demand for Labour and determine the average or price for the labour services.
    Like all price, the price of labor depend 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.

  53. Okafor Chike Charles says:

    Name: Okafor Chike Charles
    Reg No: 2021/ 241351
    Email: okaforchike2005@gmail.com
    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
    a. 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. 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.

  54. Umehonyefosim mercy chinelo says:

    Name: umehonyefosim mercy chinelo
    Matric number:2021/244215
    Department: combine social science (economics and psychology)
    Question one
    Elementary theory of utility
    Concept of utility
    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.The concept of utility is used to express consumer’s taste and preference.the analysis of consumer taste and preference is a crucial step in determining how a consumer maximize 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 thier 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 utility possesses utility, which is relative to the consumer depending on the types of utility which are:
    TIME utility: this is the satisfaction derived by a consumer from goods and services at a particular time.
    FORM utility: the transformation of goods from one form to another for the goods to confer satisfaction when consumed
    PLACE utilitythis can be obtained through the process of making goods or services more easily available to potential consumers.This implies that the easily available to potential consumers.
    POSSESSION utility: this refer to the satisfaction derived from ownership of goods and services.

    Question 2
    The Cardinal school of thought: this school of thought emphasize that utility is measurable.this means that the quality of goods or services that satisfied the need of a consumer can be evaluated through the use of figures ranging from zero to infinity.
    Assumption of cardinal approach
    1)Total utility (TU) depends on the quantity of goods or services utilize
    2)Money income of the consumer is held constant
    3)There is diminishing marginal utility (MU)
    4)The consumer is rational
    5)Utility is measurable
    Note: there assumptions are derived from the concept of total utility, average utility and marginal utility.
    Ordinal approach
    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( a curve that indicates the level of satisfaction attained by a consumer by a consumer from the consumption of two commodities).A combination of indifference curve is known as an indifference map.

    Question three
    The demand for a factor is not a direct demand but an indirect or derived demand. The demand for labour for example,is not demand for labour himself but infact, demand for goods and 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 will also be inelastic.
    When more of a factor is employed,it’s marginal productivity is likely to fall and hence it’s demand and price of a factor also depends upon the market price of the goods for the production of which the factor is used. If the goods are being sold at high prices, the demand for factors would also be higher.

  55. Attama Hillary Chinaza 2020/249823 says:

    Attama Hillary Chinaza 2020/249823
    SLT (Bch) cheerfulnaza@gmail.com
    1: Utility theory is based on the fact that satisfaction which consumers derived from consumption of goods and services can be measure quantitative.utility is the amount of satisfaction that a consumer derive from the consumption of goods and services at a particular time.
    2: Cardinal school of taught and Ordinal school of taught.
    Cardinal school of taught emphasizes that utility is measurable.this 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.while the ordinal school of taught States that the utility cannot be measured in exact number but can only be ranked or put in order.here, utility is completely a psychological element and it cannot be expressed in Cardinal numbers.
    3: labour market is defined as output per workers or per hour worked.factors that can affect labour market include worker’s skills, technological change, management practices and change in other inputs(such as capital)

  56. Elias ebubechukwu jesse says:

    Registration number: 10539744FC
    Department: Public administration and local government.
    Level: 100lv

    (1)….
    The elementary theory of utility is a theory of consumer behavior that explains how individuals make choices based on their preferences and constraints. It is based on the idea that consumers aim to maximize their satisfaction or utility, subject to their budget constraints.
    According to this theory, consumers have preferences for different goods and services, and they allocate their limited resources (income) among different options in order to maximize their utility. The satisfaction or utility that consumers derive from consuming a particular good or service depends on their subjective preferences, and it is typically measured in terms of units of utility or utils.
    Consumers face budget constraints, which limit the amount of goods and services they can purchase. This constraint is represented by the budget line, which shows all the combinations of goods that can be purchased given the consumer’s income and the prices of goods.
    Consumers maximize their utility by choosing the combination of goods and services that lies on the highest indifference curve that is still within their budget constraint. Indifference curves represent the different levels of utility that a consumer can obtain from different combinations of goods and services, assuming that the consumer is indifferent between any two points on the same curve.
    The slope of the indifference curve is the marginal rate of substitution (MRS), which measures the rate at which a consumer is willing to trade one good for another while maintaining the same level of utility. The MRS is typically diminishing, meaning that consumers are willing to trade less of one good for another as they consume more of it.
    Overall, the elementary theory of utility provides a framework for understanding how consumers make choices based on their preferences and constraints, and how these choices can be represented mathematically using indifference curves and the budget constraint.

    (2)….
    There are two main schools of thought when it comes to the concept of utility: classical economics and neoclassical economics. Here are the different views of utility according to these two schools of thought:
    1. Classical Economics:
    According to classical economics, utility is the satisfaction that an individual derives from consuming a good or service. This satisfaction is subjective and varies from person to person. However, classical economists believe that the concept of utility cannot be measured or quantified since it is a psychological construct.
    Classical economists also believe that utility is not the primary determinant of economic behavior. Instead, they argue that individuals make decisions based on the cost and availability of goods and services. This means that individuals will only consume a good or service if its cost is lower than its perceived benefit or utility.
    2. Neoclassical Economics:
    Neoclassical economists, on the other hand, view utility as a measurable and quantifiable concept. They argue that utility can be measured in units called utils, which represent the satisfaction an individual derives from consuming a good or service.
    Neoclassical economists believe that individuals are rational and make decisions based on maximizing their utility. This means that individuals will consume a good or service as long as its marginal utility (the additional satisfaction gained from consuming one more unit) is greater than its marginal cost (the additional cost of consuming one more unit).
    Overall, classical economists see utility as a subjective and unmeasurable concept that is not the primary determinant of economic behavior. Neoclassical economists, on the other hand, view utility as a measurable and quantifiable concept that is the primary determinant of economic behavior.

    (3)….
    The demand for productive factors, such as labor, refers to the amount of these factors that firms are willing to hire or purchase at a given price. The pricing of these factors refers to the wage rate or payment that is required to hire or purchase these factors.
    In the labor market, the demand for labor is determined by the marginal productivity of labor, which refers to the additional output that is generated by hiring one additional unit of labor. Firms will hire additional workers as long as the marginal revenue generated by their work is greater than the cost of hiring them. The demand for labor is also affected by the price of the product being produced, as higher prices will increase the demand for labor.
    The pricing of labor is determined by the intersection of the demand and supply curves for labor. The supply of labor is determined by the number of workers who are willing and able to work at a given wage rate. The higher the wage rate, the greater the number of workers who are willing to supply their labor. The pricing of labor is also affected by the skills and productivity of workers, as more skilled workers can command higher wages.
    In general, the demand for and pricing of productive factors, including labor, is influenced by a variety of factors such as the level of economic growth, technological change, and government policies. For example, an increase in economic growth may lead to an increase in demand for labor, while government policies such as minimum wage laws may affect the pricing of labor.

  57. Name: Omeh Jennifer Ezinne Reg No: 2021/246591 says:

    ANSWER TO QUESTIONS NUMBER 1
    Theory is a carefully thought out explanation for observation of the natural world that has been constructed using the scientific method and which brings together many facts and hypothesis
    Utility theory is based on the fact that satisfaction which consumers derived from consumption of goods and services can be measure quantitative.in economics utility theory tries to explain the behavior of individual consumers in an economy. It also argues an individual given a list of options can rank those options in a precise order of preference each individual has his or her choices which are set and are not changing over time
    Utility theory bases its belief upon individual’s preferences.it’s a theory postulated in economics to explain behavior of individual based on the premise people can consistently rank order their choices depending upon their preferences

    ANSWER TO QUESTION NUMBER 2
    It is difficult to measure utility but economist have tried to quantify utility in two different ways which includes
    1.1 cardinal utility
    1.2 ordinal utility

    CARDINAL UTILITY
    These utility believes in measuring the satisfaction level in utility.
    The 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 though the use of figure which range from zero to infinity
    Cardinal utility imposes the assumption that levels of absolute satisfaction exist, so that the magnitude of increase to satisfaction can be compared across different situations.
    Cardinal utility shows that the unit we consume can be measured in numbers it is less practical form of measuring satisfaction compare to ordinal utility
    ORDINAL UTILITY
    This believes that the satisfaction level cannot be evaluated which means it can be leveled the ordinal utility function is a function representing the preference 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 all of the theory of consumer decision making under conditions of certainty can be and typically is expressed in terms of ordinal utility

    ANSWER TO QUESTIONS NUMBER 3
    The theory of factor pricing deals with the determination of the share prices of four factors of production namely
    1.1 land
    1.2 labour
    1.3 capital
    1.4 enterprises
    In order words the theory of factors pricing is concerned with the principle according to which the prices of each factor of production is determined and distributed
    The demand for labor describe the amount and market wage rate workers and employers settle upon at any given moment. If labor productively increase form will demand more labor at each wage rate and the firms demand for labor itself will increase this would shift the labor demand curve outward the demand for any factor of production 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 consumer
    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 increase the firm will demand more labor thus hiring more staff

  58. name Ononuju Uchenna Esther
    reg no 2021/243238
    unit. education/economics

    Utility can be defined as the total quantity of satisfaction derived from consumption of goods and services. Production is not complete untill it gets to the final consumer utility is measured in utiles, we have five types of utility
    Place utility:is a type of satisfaction derived from comsumption of good and services at a particular place eg using fan during rainy season.
    Form utility: lts a utility derived from consumption of goods and services derived from consumption of goods by converting it to a particular form eg converting floor to bread.
    Time utility: lt is a satisfaction derived from consumption at a particular time.
    Possession utility: lt is a satisfaction derived from consumption of good or service you own eg satisfaction from the car you bought for yourself.
    2
    Cardinal school of thought. Ordinal school of thought
    1 Cardinal school of thought: Cardinal school of thought assumes that utility can be measured using a number ranging from one to infinity,it also assume that consumer can be rational it assumes that income can be held constant.
    Ordinal school of thought ordinal school of thought assume that utility can can be ranked in ordinal school of thought two commodity are being considered xandy it requires a consumer to draw a scale of preference the criticism is that commodity are not divisible

    2 .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.

  59. Utility can be defined as the total quantity of satisfaction derived from consumption of goods and services. Production is not complete untill it gets to the final consumer utility is measured in utiles, we have five types of utility
    Place utility:is a type of satisfaction derived from comsumption of good and services at a particular place eg using fan during rainy season.
    Form utility: lts a utility derived from consumption of goods and services derived from consumption of goods by converting it to a particular form eg converting floor to bread.
    Time utility: lt is a satisfaction derived from consumption at a particular time.
    Possession utility: lt is a satisfaction derived from consumption of good or service you own eg satisfaction from the car you bought for yourself.
    2
    Cardinal school of thought. Ordinal school of thought
    1 Cardinal school of thought: Cardinal school of thought assumes that utility can be measured using a number ranging from one to infinity,it also assume that consumer can be rational it assumes that income can be held constant.
    Ordinal school of thought ordinal school of thought assume that utility can can be ranked in ordinal school of thought two commodity are being considered xandy it requires a consumer to draw a scale of preference the criticism is that commodity are not divisible

    2 .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.

  60. Chibudom Ironuru says:

    Name: Chibudom Ironuru
    Matric Number: 2021/241955
    Department: Economics
    Level: 100 Level
    Course: Principles of Economics 1 (ECO 101)

    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 OF THOUGHT
    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

    3.) 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.

  61. Agbo Eberechukwu Eunice says:

    Name: Agbo Eberechukwu Eunice
    Reg number: 2021/241938
    Email: agboeunice61@gmail.com

    1) Elementary theory of utility…..
    Utility can be defined as the satisfaction derived from consuming a particular product. That is the ability of good’s or 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. Utility differs from person to person, place to place and time to time, when a commodity is capable of satisfying human wants, we can conclude that the commodity has utility. The concept of utility is used to express consumers tastes and preference. The analysis of consumers tastes and preferences is a crucial step in determining how a consumer maximizes satisfaction in spending income that is being rational. Consumer will strive to maximize it’s satisfaction with the available resources they have. There are four types of utility namely:
    1) Form utility: This is the transformation of goods from one form to another for the goods to confer satisfaction when consumed .e.g making bread from flour.
    2) Time utility: This is the satisfaction derived from consuming a particular product or commodity at a particular time.
    3) Place utility : This is the process of making goods accessible at a particular environment to people that are actually in need of them.
    4) possession utility : Satisfaction derived from consuming product that you own e.g Car, your own house rather than tenant etc.

    2) There are two school of thought namely
    Cardinal school of thought and ordinary school of thought
    I) 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 of a consumer can be evaluated from the use of figures ranging from zero to infinity. Utility is measure in utils. Cardinal utility is the idea that economic welfare Can be given a value. For example… People may be able to express the utility that consumption gives for certain goods. There are are five assumption of the Cardinal school of thought namely:
    a) Total utility depends on the quantity of goods and services
    b) Money income of the consumer is hold constant.
    c) There is diminishing marginal utility
    d) The consumer is rational
    e) Utility is measurable
    ( They are derived from the concept of total utility, marginal utility and average utility.)
    2). ORDINAL UTILITY
    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 level of consumption but we do not give exact numerical figures for Utility. We don’t calculate the exact levels of utility.

    3 ) In Economics, there are four main factors of production, which are Land, labour, capital and enterprise. The price that an entrepreneur pays for availing the services of these factors is called factor pricing. A factor of production is any resources resources used by the firm in it’s production.
    Demand for a factor of production can be refer as a situation whereby a firm needs assistance in making a production or output to the society which lead to employment of this factors mainly Land , capital and labour with their interest tagged on for the successful output production.
    a) Land market: This refers to not just land but also all resources that are found in nature, like water and timber.reward for land is rent.
    b) Capital market: refers to physical capital and human capital. Physical capital are all man made resources used in production such as tools, equipment and machinery while human capital refers to improvement in labour. Reward for capital is interest.
    c) Entrepreneurship: Refers to the innovation effort in combining resources productively. Reward for Entrepreneur is profit.
    d) Labour market: Emphasizing on the labour market. Labour market is the work done by human. The demand for labour is not demand for labour himself but infact demand for goods and services which the labour produces . Thus, when demand for goods and services increase, the demand for the factors which produces those goods would also rise. If demand for good is elastic, the demand for factors would also be elastic. Similarly, when demand for goods is in elastic, the factor which produces it will also be inelastic. When more of a factor is employed , it’s marginal productivity is likely to fall and hence it’s demand and price are also likely to become lower. Labour might said to be not efficiently productive when an entrepreneur employed too much labour market more than needed….It might set in law of diminishing marginal utility. For example. When a company has 2 workers working for them, they were producing 3 bags of rice per hour,then when 3 are now employed as in total number of workers, they were producing 3 and half bag of rice and the company goes on to add extra worker now they are producing 4 bags of rice which shows that their labour power is not efficiently utilized setting in to Law of diminishing marginal utility in the case of extra unit of labour employed .
    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.

  62. Christian Ifechukwu thankGod says:

    Name: Christian Ifechukwu thankGod
    Department: Economics
    Course: Eco 101
    Reg number: 2021/245589

    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 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. Various schools of thought differ as to how to model economic utility and measure the usefulness of a good or service.
    So therefore, Utility in economics, refers to the usefulness or enjoyment a consumer can get from a service or good.

    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. There is diminishing marginal utility
    iv. Total utility (TU) depends on the quantity consumed.
    v. Money income of the consumer is held constant

    b) The Ordinal Utility Theory The ordinal utility approach is a school of thought that believes that utilitycannot be measured quantitatively, that is, utility is not additive rather itcould only be ranked according to preference. The consumer must be ableto determine the order of preference when faced with different bundles ofgoods by ranking the various ‘baskets of goods’ according to thesatisfaction that each bundle gives. For instance, if a consumer derives 3utils from the consumption of one unit of commodity X and 12 utils from theconsumption of commodity Y, this means that the consumer derives moresatisfaction from consuming commodity Y than from commodity X. Thoughto the cardinals, the consumer derives four times more utility from one unitof Y than from X. The ordinal utility theory explains consumer behaviour by the use of indifference curve.

    Assumptions of Ordinal Utility Approach
    (i) Rationality: – The consumer is assumed to be rational meaning thathe aims at maximizing total utility given his limited income and the prices ofgoods and services.
    ii) Utility is Ordinal: – According to this assumption, utility is assumed notto be measurable but can only be ranked according to the order ofpreference for different kinds of goods.
    (iii) Transitivity and Consistency of Choice: – By transitivity of choice, itmeans that if a consumer prefers bundle A to B and bundle B to C, theninvariably, the consumer must prefer bundle A to C. Symbolically, it iswritten as: If A > B and B > C; then A > C.By consistency of choice, it is assumed that the consumer is consistent inhis choice making. If two bundles A and B are available to the consumer, ifthe consumer prefers bundle A to B in one period, he cannot choose bundleB 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 atwhich the consumer can exchange between two goods and still be at thesame level of satisfaction. This assumption is based on the fact that thepreferences are ranked in terms of indifference curves which are assumedto be convex to the origin.
    (v) The Total Utility of the consumer depends on the quantities of thecommodities consumed. That is, the total utility is the addition of thedifferent utilities. u = f(q1, q2 —– qn)
    (vi) Non Satiation: – it is assumed that the consumer would always prefer alarger bundle of goods to a smaller bundle of the same good. He is neverover supplied with goods within the normal range of consumption.

    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.
    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.

    **What Is Labor Productivity?
    Labor productivity measures the hourly output of a country’s economy. Specifically, it charts the amount of real gross domestic product (GDP) produced by an hour of labor. Growth in labor productivity depends on three main factors: saving and investment in physical capital, new technology, and human capital.
    Labor productivity, also known as workforce productivity, is defined as real economic output per labor hour. Growth in labor productivity is measured by the change in economic output per labor hour over a defined period. Labor productivity should not be confused with employee productivity, which is a measure of an individual worker’s output.

  63. Nwankwo Augusta Ebube says:

    1. The elementary theory of utility, also known as the law of diminishing marginal utility, states that as a consumer consumes more and more of a particular good, the satisfaction or utility they derive from each additional unit of the good decreases. In other words, the first unit of a good consumed provides the greatest utility, with each subsequent unit providing less and less utility. This principle is based on the assumption that individuals make rational decisions and seek to maximize their satisfaction or utility from the goods and services they consume.

    2. The two schools of thought regarding utility are the cardinal school and the ordinal school. The cardinal school of thought holds that utility can be measured quantitatively, with a numerical value assigned to each unit of a good. This view suggests that consumers can compare the total utility of different bundles of goods and choose the bundle that provides the highest total utility. The ordinal school of thought, on the other hand, suggests that utility is only meaningful in terms of the ranking of preferences, and that it cannot be measured quantitatively. In this view, consumers can only determine their relative preferences between different bundles of goods, and choose the bundle that they prefer the most.

    3. The demand for productive factors, such as labor, is derived from the demand for the goods and services that those factors help to produce. In other words, as the demand for goods and services increases, the demand for the factors of production used to produce those goods and services also increases. The pricing of productive factors, including labor, is determined by the interaction of supply and demand in the market. As the demand for labor increases relative to the supply, the price of labor will increase, and vice versa. The elasticity of demand and supply for labor can also impact the pricing of labor, with more elastic supply or demand resulting in less drastic changes in price in response to changes in demand or supply. Additionally, institutional factors such as minimum wage laws, collective bargaining agreements, and government policies can also impact the pricing and demand for labor.

  64. ILO DESTINY CHINASA says:

    Name: ilo destiny chinasa
    Department : COMBINED SOCIAL SCIENCES ( economic/ psychology)
    course: ECO 101
    Reg: 2021/243714
    ASSIGNMENT
    1.) Discuss the elementary theory of utility
    ans: 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. in other words ,utility is the level of satisfaction a person derives from consuming a good or service. when the product or service is useful to the consumer needs or wants .they can achieve a certain level of utility from consuming it
    2.) mention and discuss the different views of utility according to the school of thought
    Ans:( 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 figure which range from zero to infinity.
    (ii). Ordinal utility: 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 Toyota car but we don’t say by how much .it is argued this is more relevant in the real world. this simply means that the of satisfaction a consumer obtains after consuming various commodities cannot be measured in numbers but can be arranged in order of preference
    3) explain the demand for and pricing of productive factors emphasizing on the labour market
    Ans: The demand for labor is an economic principle derived from the demand firms output. that is ,if demand of a firm’s output increases, the firm will demand labour, thus hiring more staff .

  65. 1. Utility is defined as the the benefits or satisfaction derived from the consumption of goods or services. 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.
    Total utility is the total benefits or satisfaction that a person gets from the consumption of goods and services. This depends on the person’s level of consumption.
    Average utility is the consumption of per unit of a commodity at a particular time. It is calculated as Total utility/ Quantity.
    Marginal utility is the additional utility received from consuming one additional unit of the commodity per unit of time. The decline in marginal utility as consumption increases is known as the principles of diminishing marginal utility.
    Utility maximization is the attainment of the greatest possible total utility.

    2a. Cardinal school of thought states that utility can be marked or measured using numbers ranging from 0 to infinity. It is measured in utilities. The types of Cardinal utility includes;
    I) Time utility: This is the satisfaction derived from consuming a commodity at a particular time.
    ii) Place utility: This can be defined as a satisfaction you derive from how easily it is to obtain a particular commodity or product.
    iii) Form utility: This can be defined as the transformation of products from one form to another to derive satisfaction. Example the use of flour in baking bread.
    iv) Possession utility: This is the the satisfaction derived from an individual or consumer own product or property.
    The assumptions of Cardinal school of thought includes;
    I) Utility can be measured
    ii) Consumers are rational
    iii) Income is held constant
    iv) The concept of diminishing marginal utility
    v) Total utility depends on the goods and services.

    2b. Ordinal school of thought 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.
    The assumptions of Ordinal utility includes;
    I) Rationality of consumers: This analysis assumes that rational consumer’s 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 and services. It is not obligatory to undertake that utility is quantitative or quantifiable.
    iii) Transitivity: According to this assumption, where 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 par 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 choice available to him. It means that the consumer has not reached the point of saturation incase of any commodity such condition is called non-satiety.
    vi) Diminishing marginal rate of substitution: Under this analysis, 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 ∆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 the worker’s supply of labour. The supply and demand of labour in the market is influenced by changes in bargaining power.
    Labour market like other markets in the economy is governed by the forces of demand and supply. The supply and demand of labour determine the wage or prices paid for labour services.
    The Labour market demand is a derived demand. Most labour are services rather than being final goods are inputs into the production of other goods and services. To understand Labour demand, we first focus on the firm’s demand for labour for the production of a good.

  66. Nwankwo Augusta Ebube says:

    Nwankwo Augusta Ebube
    2021/247116.
    Nursing Science.

  67. Ezema miracle chidera says:

    NAME: Ezema miracle chidera
    MATRIC NO: 241317
    DEPARTMENT: Economics
    COURSE: Eco 101
    Answer:
    1) The main hypothesis in the theory of decision is that the person who is in the position of deciding is entitled to the “economic man”. Also, the individual acts rationally. Utility is the ability to satisfy ( eliminate) human needs of goods and services. Utility is basically a psychological concept and also is the basis of economics and finance. Three types of utility takes place in the economics and finance literature. Expected benefit theory assumes that people choose risky or uncertain opportunities by comparing the expected benefits for them. Allais and Ellsberg paradoes criticize expected utility theory. Tversky and Kahneman (econometrics; 47: 263-291, 1979) present that the expected utility axioms are violated for more reasonable lottery alternatives than in the Allais paradox and put a link between finance and psychology.
    2) cardinal utility: Bentham (1789) assumes that the value defined as “utility” can be measured numerically (cardinal). According to Bentham, a standard utility scale that can be applied to all people can be developed.
    *) Ordinal utility: ordinal utility theory assumes that benefit is an immeasurable magnitude.

  68. Ezema miracle chidera says:

    1) The main hypothesis in the theory of decision is that the person who is in the position of deciding is entitled to the “economic man”. Also, the individual acts rationally. Utility is the ability to satisfy ( eliminate) human needs of goods and services. Utility is basically a psychological concept and also is the basis of economics and finance. Three types of utility takes place in the economics and finance literature. Expected benefit theory assumes that people choose risky or uncertain opportunities by comparing the expected benefits for them. Allais and Ellsberg paradoes criticize expected utility theory. Tversky and Kahneman (econometrics; 47: 263-291, 1979) present that the expected utility axioms are violated for more reasonable lottery alternatives than in the Allais paradox and put a link between finance and psychology.
    2) cardinal utility: Bentham (1789) assumes that the value defined as “utility” can be measured numerically (cardinal). According to Bentham, a standard utility scale that can be applied to all people can be developed.
    *) Ordinal utility: ordinal utility theory assumes that benefit is an immeasurable magnitude.

  69. Sunday Bibian Chinecherem says:

    1. Utility is the maximum satisfaction a person or group of persons get from the consumption of a particular product(s) at a particular time in a particular place
    2. The two school of thought are the Cardinal and ordinal school of thought
    Cardinal school of thought emphasizes that utility as a level of satisfaction a consumer gets from the consumption of various goods or service can be measured and expressed in qualitative numbers.
    Ordinal school of thought emphasizes that utility as a level of satisfaction a consumer gets from the consumption of various goods and services cannot be measured in numbers but can be arranged in the order of preferences
    3. The demand for labour shows how many workers the firms are willing and able to hire at a given time and wage rate.
    factors that affect demand and price in labour market are:
    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.
    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 utilizing that factor.
    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 productive factor can be determined by the number of firms currently utilizing that factor.
    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.

  70. Name: Nwuzor Kenneth
    Department: Philosophy
    Level: 100L
    Reg Number: 10691423EC.
    Course: ECO 101

    Outline
    Elementary Theory of Utility..
    Views Of Utility In Accordance To Schools of Thoughts.
    Emphasis on Labor Market in Demand For Pricing Factors.

    The Elementary Theory of Utility

    Utility is about making purchase with given prices of commodities as well as a given income in accordance with consumer’s want, desires, taste, preference or indifference. To define Utility, it is the satisfaction derived by a consumer when consuming a particular product.. As Human wants are not fully satisfied and they crave to want more and try more new things that is how the explanation of Utility escalated.

    The Views Of Utility In Accordance To The
    Schools Of Thoughts.

    CARDINAL UTILITY: This concept of Utility, believes Utility is measurable and also stated that consumers are rotational, the range of which one can measure this utility is from 0 to infinity.

    ORDINAL UTILITY: In this concept, utility is been ranked and not measured.

    Emphasis on Labor Market In Demand For Pricing
    Factors.

    The demand for labor is defined as the capacity of a particular firm organization to employ a particular range or number of of workers in line with what the economy situation per time.
    . This relationship is also called the marginal product of labor (MPL) in the economics community.

  71. Chigbo Juliet Chinwendu
    Pure and industrial chemistry
    2020/243912
    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 or service. Utility can be said to be relative to consumer and the variations among the individuals or consumers depend on the time, place and form.
    2i. Total utility is the total amount of satisfaction a consumer derives from the consumption of a particular commodity at a point in time. It is the total benefit a person gets from consumption of goods and services.
    ii. Average utility is the amount of satisfaction a consumer derives from the consumption of a unit of a commodity. It is derived by dividing the total amount of utility derived by the total number of commodities consumed by the customer.
    iii. Marginal utility is the additional satisfaction a consumer derives from the consumption of an additional unit of a particular commodity at a particular period in time. It is the change in the total utility as a result of the consumption of additional unit of a commodity.
    3. The demand for a factor is not a direct demand but an indirect or derived demand. The demand for labour for example is not demand for labour himself but infact demand for goods and services which the labour produces. Thus, when demand for goods increases, the demand for the factors which produce those goods would also 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.

  72. Chibuzor Godson Chikwesiri says:

    Name: CHIBUZOR GODSON CHIKWESIRI.
    Reg Number: 2021/244133
    Email Address: godson13heir@gmail.com
    Course Code: ECO 101

    ANSWER.

    Question One (1)

    THE ELEMENTARY THEORY OF UTILITY.

    Concept Of Utility.
    Utility measures the amount of satisfaction that an individual receives from the quantity of goods or services utility refers to the ability of goods or services to satisfy unlimited wants of humans. It Alvan also be viewed as the satisfaction, fulfilment or pleasure derived by an individual,groups or firms from the consumption of certain products or services. Products are desired because of their capacity to satisfy human wants or needs. This concept is used to express consumer’s tastes and preferences .The analysis of consumer taste and preferences is a significant step in determining how a consumer maximizes satisfaction in spending income or money generated.Utility is measured in ‘Utils’. A util is an abstraction used by Economists to measure the amount of satisfaction one receives. A util is an abstraction because it’s something inside one’s 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.
    The utility of a consumer is relatively stern to measure. However,it can be determined indirectly with consumer behaviour theory,which assume that consumers will strive to maximise their utility with the resources available to them.

    Utility has four (4) basic types existing.These are:

    A. Form Utility – Worth of the goods or service based on the combined resources it took to create the goods or service, thus brings it’s form utility or satisfaction to be attained.

    B. Time Utility – The utility that is found in offering a good or service to consumers at the right time. When the exact time ones desire is needed, it is obtined, thus time utility is derived.

    C. Place Utility – Refers to offering a goods or service in the right place for consumers’ easy accessibility.Thus, utility is derived at that point or place it’s desired.

    D. Possession Utility – The satisfaction a consumer gains from owning a certain product/goods.It shows the benefits one derives from the ownership and use of certain products.The more Useful a goods is to an individual when owned,e.g one’s ownership of his)her phone,cars et.c.

    Question Two(2)

    The Two Schools of Thoughts Which Views the Concept of Utility.

    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.This means that the quantity of goods or services that satisfies the need or want of a consumer can be evaluated through the use of figures ranging from zero(0) to infinity(…) 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. Cardinal utility assigns a number to the utility, e.g a basket of apples gives a utility of 20 and a bushel of corn is 40.One important concept related to cardinal utility is the law of diminishing marginal utility, which states that at a certain point, every extra unit of a good provides less and less utility. While a consumer might assign the first basket of bananas a value of 10 utils, after several baskets, the additional utility of each new basket might decline significantly. The values that are assigned to each additional basket can be used to find the point at which utility is maximized or to estimate a customer’s demand curve.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.It’s based on the cardinal counting numbers like 1, 2, 3, 4. For instance,if a boy uses cardinal utility, he will subjectively place a value on the grocery items in a store by assigning a numerical value to them that represents the amount of satisfaction or happiness he will get when he eats it. His numbers might look like this:
    Roast beef slices: 40 utils
    Fish: 60 utils
    Chicken: 75 utils
    He is going to choose the chicken because it will provide the most utility.He will also be willing to pay more for chicken than he would for fish or beef.

    ASSUMPTIONS OF CARDINAL APPROACH OR SCHOOL OF THOUGHT.

    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.

    2. ORDINAL SCHOOL OF THOUGHT:
    The ordinal approach of utility means ranking items under consideration from most satisfaction to the least. It requires that consumers make a scale of preference, by choosing between the various products that gives one the same level of satisfaction. 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.Many economists believe that consumers do this in their heads when they make purchase decisions. This approach makes use of an ‘ indifference curve’ i.e a curve indicating the levels of satisfaction attained by a consumer from the consumption of two commodities. of ordinal utility, which uses rankings instead of values. The benefit of using rankings is that the subjective differences between products and between consumers are eliminated, and all that remains are the ranked preferences. One consumer might like mangoes more than bananas, and another might prefer bananas over mangoes. These are comparable, if subjective preferences.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 goods 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. chicken > fish > beef

    Lastly, utility is used in the development of indifference curves, which represent the combination of two products that a consumer values equally and independently of price. For example, a consumer might be equally happy with five oranges and two mangoes or two oranges and five mangoes. As a result, five oranges plus two mangoes and two oranges plus five mangoes represent two points on the consumer’s indifference curve.

    Question Three(3)

    THE DEMAND FOR AND PRICING OF PRODUCTIVE FACTORS.

    The modern theory of pricing of factors of production gives a satisfactory answer to the problem of determining factor prices. According to the theory,just as the price of a product is 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 it’s supply.

    Demand For a Factor Of Production.
    The demand for a factor is not a direct demand but an indirect or derived demand.The demand for labour for example, is not demand for labour himself but infact, the demand for goods and services which the labour produces.Thus,when demand for goods increases,the demand for the factors which produce those goods would rise also. If demand for a commodity is elastic, the demand for factorswould also be elastic. Similarly, when demand for goods is inelastic,the factor which produces it will also be inelastic.When more of a factor is employed, it’s marginal productiv Asity is likely to decrease hence,it’s demand and price are also likely to decrease. The demand and price of a factor also depends on the market price of the commodity for the production of which the factors are used. If the goods are being sold at high prices,the demand for the factors would also be higher.

    Supply Of a Factor Of Production.
    This depends upon a number of factors. Using the case of labour; The supply of labour depends upon the size and composition of population, it’s geographical and occupational distribution, efficiency of labour, expected income, etc. Though, one thing that is generally true is that more of labour would be offered in the market when wages are higher compared to what is being offered at lower wage level. It is only a general tendency which may not always be true. If at a higher wage rate, labour begins preferring leisure to work, the supply of labour is likely to decrease thus, the supply curve of labour may be backward sloping. However, such cases are very rare. Therefore, for the purpose of our analysis, the supply curve of labour may be treated to be upward sloping showing that more of labour is supplied when the wages go up.

  73. Onwuachumba Chinenye Jessica says:

    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.

  74. OGBAJI PETER ODEY says:

    NAME: OGBAJI PETER ODEY
    DEPARTMENT: NURSING SCIENCES
    MATRIC NO. 2021/243012

    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.

    2. Many theories describe the level of satisfaction. 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.

    The Cardinalist school asserts that utility can be measured and quantified. It means, it is possible to express utility that an individual derives from consuming a commodity in quantitative terms. Ordinal Approach: The ordinalist school asserts that utility cannot be measured in quantitative terms.

    3.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.

    What is Productivity and Costs?
    Productivity and costs refer to an economic data set that measures future inflationary trends with two indicators. Productivity is the indicator that measures labor efficiency in producing goods and services in the U.S. economy. Costs is the indicator that measures the unit labor costs of producing each unit of output in the U.S. economy. Together, productivity and costs monitor inflationary trends in wages, which usually affect trends of inflation in other areas.

    Understanding Productivity And Costs
    Both the bond and equity markets seem to be affected in the same direction by productivity data. Because a more efficient workforce can lead to higher corporate profits, equity markets enjoy seeing good productivity growth. The bond markets, which benefit from a low inflationary situation, also prefer to see high productivity due to its role in keeping inflationary pressures down. As productivity growth occurs, inflation is stemmed because the economy can sustain higher growth than could be possible with inefficiencies in the labor markets.

  75. OGBAJI PETER ODEY says:

    NAME: OGBAJI PETER ODEY
    DEPARTMENT: NURSING SCIENCES
    MATRIC NO. 2021/243012

    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.

    2. Many theories describe the level of satisfaction. 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.

    The Cardinalist school asserts that utility can be measured and quantified. It means, it is possible to express utility that an individual derives from consuming a commodity in quantitative terms. Ordinal Approach: The ordinalist school asserts that utility cannot be measured in quantitative terms.

    3.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.

    What is Productivity and Costs?
    Productivity and costs refer to an economic data set that measures future inflationary trends with two indicators. Productivity is the indicator that measures labor efficiency in producing goods and services in the U.S. economy. Costs is the indicator that measures the unit labor costs of producing each unit of output in the U.S. economy. Together, productivity and costs monitor inflationary trends in wages, which usually affect trends of inflation in other areas.

    Understanding Productivity And Costs
    Both the bond and equity markets seem to be affected in the same direction by productivity data. Because a more efficient workforce can lead to higher corporate profits, equity markets enjoy seeing good productivity growth. The bond markets, which benefit from a low inflationary situation, also prefer to see high productivity due to its role in keeping inflationary pressures down. As productivity growth occurs, inflation is stemmed because the economy can sustain higher growth than could be possible with inefficiencies in the labor markets.

  76. Ameh Emmanuel Chinaecherem says:

    Name: Ameh Emmanuel Chinaecherem
    Reg no : 2021/247162
    emal: emmanuelchinaecherem115@gmail.com

    1) 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.

    2) The school of thoughts are:
    A) The cardinal school of thoughts
    B) The Ordinal school of thoughts.

    The Cardinal school of thoughts states that utility can be measured. The consumption theory is based on the notion that consumer aims at maximizing his utility, and thus, all his actions and doings are directed towards the utility maximization.
    In the assumption of cardinal utility, it also states that
    i) It shows the diminishing law of marginal utility.
    ii) it assume that your money income is held constant.
    iii) It makes use of two products.

    The ordinal school of thoughts states that Utility can be ranked in other of importance.
    It deals with one product. So, in simple words, we can say that ordinal utility asserts that it is easier to ask a consumer how good a product is in comparison to others instead of how good any product is. For example, it is easy for anyone to tell if they love pizza or burgers, but now how much he loves pizza or burgers. In assumption of ordinal utility; it’s states
    i) Consumers are rational.
    ii) Always prefer larger quantities of commodities.
    iii) Their choice is consistent and transitive.

    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.
    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.

  77. NAME:Odo Anthony Arinze. Reg Number:2021/247086.Department:Public administration and local government . Course code:Eco 101 says:

    1) utility refers to want satisfying power of a commodity.it is the satisfaction,actual or expected derived from consumption of commodity
    The utility theory is based on fact that satisfaction which consumers obtain from consumption of goods and service.
    And it was theorized by swiss mathematician,Daniel Bernoulli on the 18th century.

    2) Cardinal utility: it emphasizes that utility is measurable . that means after consuming a given quantity of a commodity the consumer can simply evaluate his satisfaction through the use of figures. Ranging from zero to infinity.
    B) ordinal utility: the ordinal utility states that the level of satisfaction a consumer obtains after consuming a commodity Cannot be measured in numbers but can be arranged in the order of preference.

    3)
    Demand for lab our is an economic principle derived from the demand for a firm’s output.
    For instance if demand for a firm’s output increases the firm will demand more Labour,thus hiring more staff and if demand for the firm’s output of goods and services decreases, it will require less labour and its demand for labour will fall and less staff will be retained.

  78. NAME:Odo Anthony Arinze. Reg Number:2021/247086.Department:Public administration and local government . Course code:Eco 101 says:

    1) utility refers to want satisfying power of a commodity.it is the satisfaction,actual or expected derived from consumption of commodity
    The utility theory is based on fact that satisfaction which consumers obtain from consumption of goods and service.
    And it was theorized by swiss mathematician,Daniel Bernoulli on the 18th century.

    2) Cardinal utility: it emphasizes that utility is measurable . that means after consuming a given quantity of a commodity the consumer can simply evaluate his satisfaction through the use of figures. Ranging from zero to infinity.
    B) ordinal utility: the ordinal utility states that the level of satisfaction a consumer obtains after consuming a commodity Cannot be measured in numbers but can be arranged in the order of preference.

    3)
    Demand for labour is an economic principle derived from the demand for a firm’s output.
    For instance if demand for a firm’s output increases the firm will demand more Labour,thus hiring more staff and if demand for the firm’s output of goods and services decreases, it will require less labour and its demand for labour will fall and less staff will be retained.

  79. Amuh Tobenna says:

    Name: Amuh Tobenna Anthony Department: Nursing Sciences
    Reg No: 2020/242720
    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.
    3. The demand for and pricing of productive factors, such as labour, plays 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: 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 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.

  80. Amuh Tobenna says:

    Name: Amuh Tobenna Anthony
    Reg No: 2020/242720
    Department: 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.
    3. The demand for and pricing of productive factors, such as labour, plays a crucial role in determining a society’s overall economic activity and welfare. Here’s an explanation of the demand for and pricing of labour: Demand for labour: 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 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.

  81. 1) Utility theory is based on the fact that satisfaction which consumers derived from consumption of goods and services can be measure quantitative .
    2)i Cardinal school of thought
    ii)Ordinal school of thought
    i)Cardinal school of thought :state that the level of satisfaction a consumer acquires after consuming any goods and services can be measurable and expressed in quantitative numbers .Using number ranging from 0 to infinity ,it is measured in utile.
    ii)Ordinal school of thought :state that the satisfaction a consumer gets after consuming a goods and services .It cannot be measured rather it’s ranked ,for example ,a consumer may prefer soft drins over hard drinks.In such case,the soft drink would have 1st rank,while 2nd rank would be given to hard drinks

    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.

  82. Ogeobuma says:

    Name: ogeobuma Janet Jennifer
    Department: social science education
    unit: Economics Education
    reg no: 10156354JD

    1)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 in contrast, 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.To begin, assume that an individual faces a set of consumption “bundles.” We assume that individuals have clear preferences that enable them to “rank order” all bundles based on desirability, that is, the level of satisfaction each bundle shall provide to each individual. This rank ordering based on preferences tells us the theory itself has ordinal utility—it is designed to study relative satisfaction levels. As we noted earlier, absolute satisfaction depends upon conditions; thus, the theory by default cannot have cardinal utility, or utility that can represent the absolute level of satisfaction. To make this theory concrete, imagine that consumption bundles comprise food and clothing for a week in all different combinations, that is, food for half a week, clothing for half a week, and all other possible combinations

    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.

    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. Consumers’ utility increases as the quantity consumed increases but not at equal rate because consumer has a saturation point in the consumption of particular commodity at a given time.

    AVERAGE UTILITY: This derived by dividing total utility by

    the units of the commodity consumed. That is, it is the satisfaction which a consumer derives per unit of a commodity consumed. AU = TU/Q

    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.

  83. Name: Onoyima George Kosisochukwu
    Reg no:2021/245631
    Dep: Public administration and local government
    Course code: Eco 101
    Gmail: williamsuzochukwu13@gmail.com

    1. Briefly discuss the elementary theory of utility.
    Utility is 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. In economics, there are two different types of utility: expected utility and subjective utility.

    Students choose to study because they want to pass their exams. We eat something because we’re hungry. We drive a car to reach a certain destination. We sleep to give our bodies some rest. Utility is involved in everything we do and we get satisfaction from consuming or using goods or services. This is what 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 called ‘utils.’

    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:
    which believe that utility can be measured using numbers ranging from 0-infinity, utility are measured in “until”.
    There are five assumption of the Cardinal school of thought:
    Utility can be measured
    It assumes that consumers are rational.
    Concept called diminishing marginal utility
    It also assumes that your money income is constant
    Total utility depends on the quantity of goods (commodity) and services consumed at a particular time.

    b. Ordinal school of thought:
    This school of thought believe that utility can be ranked.

    3. Explain the demand for and pricing of productive factors emphasising on the labour market.
    When producing goods and services, businesses require labour and capital as inputs 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, thus hiring more staff. And if demand for the firm’s output of goods and services decreases, in turn, it will require less labour and its 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 workers will pay for their time and skills.

    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 labour and the number of workers willing to supply labour at that wage.

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

  84. Ike Blessing Onyinye says:

    Name: IKE BLESSING ONYINYE
    Reg no: 2021/241946
    Date: 9/03/2023
    Department: Economics

    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.

    UTILITY THEORY.
    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.

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

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

    – Cardinal Utility is measured based on utils.

    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.

    – Ordinal Utility is ranked based on satisfaction.

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

    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.

    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.

    D: 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.

    E: 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.

  85. (1) ELEMENTARY THEORY OF UTILITY: In Economics, it’s the satisfaction that a consumer derives from the consumption of goods and services or a given commodity.

    (2) SCHOOLS OF THOUGHT
    (a) Cardinal school of thought
    (b) Ordinal school of thought

    (a) CARDINAL SCHOOL OF THOUGHT: This school of thought explains that utility can be MEASURED. ie. 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:This school of thought explains that utility can be RANKED and NOT MEASURED.ie.utility/satisfaction is completely a psychological element and it cannot be expressed in cardinal numbers.

    (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.

  86. Ononuju uchenna Esther reg no 2021/243238 says:

    Utility can be defined as the total quantity of satisfaction derived from consumption of goods and services. Production is not complete untill it gets to the final consumer utility is measured in utiles, we have five types of utility
    Place utility:is a type of satisfaction derived from comsumption of good and services at a particular place eg using fan during rainy season.
    Form utility: lts a utility derived from consumption of goods and services derived from consumption of goods by converting it to a particular form eg converting floor to bread.
    Time utility: lt is a satisfaction derived from consumption at a particular time.
    Possession utility: lt is a satisfaction derived from consumption of good or service you own eg satisfaction from the car you bought for yourself.
    2
    Cardinal school of thought. Ordinal school of thought
    1 Cardinal school of thought: Cardinal school of thought assumes that utility can be measured using a number ranging from one to infinity,it also assume that consumer can be rational it assumes that income can be held constant.
    Ordinal school of thought ordinal school of thought assume that utility can can be ranked in ordinal school of thought two commodity are being considered xandy it requires a consumer to draw a scale of preference the criticism is that commodity are not divisible

    2 .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.

  87. Egbo Harrison says:

    1). Briefly discuss the elementary theory of utility.
    i) Time utility
    This is the satisfaction derived by consumer from goods and services at a particular time.
    ii) Form utility
    The transformation of goods from one form to another for the goods to confer satisfaction when consumed is referred to as form utility.
    iii) Place utility
    This can be obtained through the process of making goods or services more easily available to potential consumers.
    iv) Possession utility
    This refers to the satisfaction derived from the ownership of goods and services.

    2) Mention and discuss the different views of utility according to the two schools of thoughts which you have been taught.
    There are two school of thought namely;
    Cardinal school of thought and
    Ordinal school of thought.
    I) 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.
    Assumptions Of Cardinal Approach.
    1 Utility is measurable.
    2 The consumer is rational.
    3 There’s diminishing marginal utility.
    4 Total utility depends on the quantity consumers.
    5 Money income of the consumer is held constant.
    II) Ordinal Approach
    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.

    3) Explain the demand for and pricing of productive factors emphasizing on the labour market.
    Demand for goods and services which the labour produces. Thus, when demand for goods increases, the demand for the factors which produce those goods would also rise.
    The demand for labour determine the wage or price paid for labour services.

    Reg No. 2018/243214
    Dept. Pure and industrial chemistry
    Name. Egbo Harrison

  88. Chekwube festus joshua says:

    Name :chekwube festus joshua
    Reg no:2021/241952
    Course:Eco 101

    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.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.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.

    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

    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
    Below are assumptions of ordinal theory
    I.Transitivity and Consistency of Choice
    Ii.Rationality
    Iii.Ordinal Utility
    Iv.Nonsatiety
    V.Diminishing Marginal Rate of Substitution (MRS)

    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.

  89. Azubuike Emmanuel Ayomide 2021/241308 says:

    Azubuike Emmanuel Ayomide 2021/241308

    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. It’s also benefits gotten from consuming a good at a particular time or ability of a commodity to satisfy human wants.

    2.) There are two views of Utility; Cardinal and Ordinal.
    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 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

    b.) 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.
    Assumption of Ordinal Utility.
    1.Rationality
    2.Ordinal utility
    3.Transitivity and uniformity of choice
    4.Non-satiety
    5.Diminishing marginal rate of substitution

    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.

    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.

  90. Name: Augustine precious chidera. Reg number:2021/244493 says:

    Name: AUGUSTINE PRECIOUS CHIDERA
    Department: Nursing department
    Course: Economics 101
    Reg number:2021/244493
    Email: augustinepreciouschidera@gmail.com
    1) Briefly discuss 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.

    2)Mention and discuss the different views of utility according to the two schools of thoughts which you have been taught.
    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.
    Cardinal utility
    It explains that the satisfaction level after consuming any goods or services can be scaled in terms of countable numbers,It is measured based on utils.Example:Pizza gives Sam 60 utils of satisfaction, whereas burger gives him only 40 utils.

    3)Explain the demand for and pricing of productive factors emphasizing on the labour market.
    ‘Prices of factors’, it means the price a factor should get for
    providing its services. Labour gets wages and use of capital is rewarded with interest. Land,
    which is an important factor of production, earns rent and an entrepreneur who takes the risk of
    business in the environment of uncertainty earns profits – either positive or negative.
    The price of a factor service is determined by the demand and supply of that factor.tra a factor adds
    to the total output produced by a firm is required to be determined at such time. In economics,
    this extra contribution is called as marginal product of labour/factor. Thus, marginal product or
    marginal physical product (MPP) of labour/factor is the addition made to the total output by
    employing one more unit of labour/factor. For instance, if 5 workers together construct 20 meters
    of road length in a day and when one more worker joins them, the road length increases to 25
    meters, then the 6th worker’s contribution to the total work is 5 meters. This is marginal physical
    productivity of 6th labour. The concept of MPP is primarily developed concerning labour, but it
    is equally applicable to other factors, such as land, capital, and organization. Thus, price of labour,
    i.e., wages depends upon the MPP of labour. A producer will equate its marginal cost of producingods with the marginal productivity of labour so as to maximize his satisfaction/profits.

  91. Onebunne Ebube Raphael 2020/244896 Pure and Industrial Chemistry says:

    1. Utility theory is based on the fact that satisfaction which consumers derived from consumption of goods and services can be measure quantitative. People desire goods and services for the satisfaction or utility those goods and services provide. Utility,is subjective but that does not make it less real. Economists typically assume that the more of some good one consumes (for example, slices of pizza), the more utility one obtains. At the same time, the utility a person receives from consuming the first unit of a good is typically more than the utility received from consuming the fifth or the tenth unit of that same good. When Alphonso chooses between burgers and bus tickets, for example, the first few bus rides that he chooses might provide him with a great deal of utility—perhaps they help him get to a job interview or a doctor’s appointment. However, later bus rides might provide much less utility—they may only serve to kill time on a rainy day. Similarly, the first burger that Alphonso chooses to buy may be on a day when he missed breakfast and is ravenously hungry. However, if Alphonso has a burger every single day, the last few burgers may taste pretty boring. The general pattern that consumption of the first few units of any good tends to bring a higher level of utility to a person than consumption of later units is a common pattern. Economists refer to this pattern as the law of diminishing marginal utility, which means that as a person receives more of a good, the additional (or marginal) utility from each additional unit of the good declines. In other words, the first slice of pizza brings more satisfaction than the sixth.

    2.
    A. Cardinal Utility
    B. Ordinal Utility

    A. Cardinal Utility:
    It explains that the satisfaction level after consuming any goods or services can be scaled in terms of countable numbers. E.g Pizza gives Sam 60 utils of satisfaction, whereas burger gives him only 40 utils. Utility is measured based on utils. It is less practical. This theory was applied by Prof. Marshall.

    B. 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. E.g 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.

    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.

  92. Francis-Agbodike Jessica Chimdalu says:

    My name is Francis-Agbodike Jessica Chimdalu.
    School reg no: 2019/249147.
    Department: Nursing Science.
    Level: 100lvl.

    Eco 101 assignment answers:
    1. 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. There are two predominant theories of utility, namely Cardinal and Ordinal 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. 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. This would shift the labour demand curve outwards. The labor market comprises four components: the labor force population, applicant population, applicant pool, and the individuals selected.

  93. Francis-Agbodike Jessica Chimdalu says:

    My name is: Francis-Agbodike Jessica Chimdalu.
    School reg no: 2019/249147.
    Department: Nursing Sciences.
    Level: 100lvl.

    Eco 101 assignment answers:
    1. 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. There are two predominant types of utility namely, Cardinal and Ordinal 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. 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. This would shift the labour demand curve outwards. The labor market comprises four components: the labor force population, applicant population, applicant pool, and the individuals selected.

  94. Ogbuka ifesinachi shedrach says:

    Name. Ogbuka ifesinachi shedrach
    Reg : No. 2021/244662
    Department. Nursing science

    1)Suppose you went to a restaurant and ordered your favourite food. What will you experience? Either the food satisfies your taste buds or not. Another day you went to another restaurant an ordered the same food. Is the experience the same? Maybe or may not be.the satisfaction you get from consuming each food in different restaurants at a particular period of them is the utility of the food . So you can say that utility is the satisfaction you get from consuming goods and services.
    There are four types of utility namely
    Time. utility
    Place. utility
    Form. utility
    Possession utility

    2) cardinal and ordinal school of thought

    *Cardinal school of thought =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.
    *ordinal school of thought = the ordinal school of thought believes that utility can not be measured quantitatively ,that utility is not addictive rather it could only be ranked according to preference .

    3)Demand for productive factor
    The type of factors of production employed is influenced by the type of product produced, the productivity of the factors and their cost. A firm producing a standardised model of car is likely to be very capital intensive whereas a beauty salon is likely to be labour intensive.
    When factors of production are substitutes, a rise in the productivity or fall in the cost of one of them may result in a change in the combination of resources being employed. A fall in the price of capital goods, for example, might lead to the replacement of some workers with machines hence producing goods and services, businesses require labour and capital as inputs to their production process. with this I can say that demand for labour in labour market is how many workers the firms are willing and able to hire at a given time and wage rate or how many workers the labour market can offer for hiring at a given time and wage rate.
    *Price of productive factors
    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. Taking labour for an instance you can say that price of productive factor as it concerns to labour is the wages entrepreneur pays for the services rendered by labourers in a particular firm. When there is a shortage of workers who have the skills, talents, experience and education necessary to complete the tasks an employer needs done, the few workers who are available can demand higher pay. Conversely, as the number of workers available increases, employers can start offering lower wages

  95. LE'OHAGA MMESOMACHI VENETIA says:

    NAME: LE’OHAGA MMESOMACHI VENETIA
    REG. NO: 2021/243538
    DEPARTMENT: NURSING SCIENCE
    EMAIL: venetiaforgreatness@gmail.com
    ECO 101 ASSIGNMENT

    1. ELEMENTARY THEORY OF UTILITY.
    Utility refers to the the benefit or satisfaction an individual derives from the consumption of a goods and services. Goods are desired because of their ability to satisfy human wants. The utility of a consumer is determined indirectly with consumer behaviour theories, which assumes 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.

    2) DIFFERENT VIEWS OF UTILITY.
    i. Cardinal school of thought
    ii. Ordinal school of thought

    I. CARDINAL SCHOOL OF THOUGHT:
    This approach emphasises that utility is measurable. That is, after consuming a given quantity of 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 states that utility cannot be measured in exact numbers but can only be ranked or put in order. This approach states that utility is completely a psychological element and it cannot be expressed in figures/ cardinal numbers.

    3) DEMAND FOR AND PRICING OF PRODUCTIVE FACTORS.
    The demand for any factor of production (land,labour or capital) is a derived demand. A derived demand is a demand for a factor not for its own sake but for the demand of the good it is used to produce. The demand for any factor of production depends on the demand for the output it is used to produce. Inputs( factors of production) are demanded by a firm if and only if households demand the good or service produces by the firm.
    The Labour service which is the brain power and muscle power of human beings rather than being final goods are inputs into the production of other goods and services. The payment for a labour service rendered is called Wage. The supply and demand for Labour determines the wage or price paid for Labour service.
    When a firm makes high profit because of the increase in price of the output of the firm, this means that the value of marginal product of Labour will increase and that also means tha wage for Labour will be high. When a firm makes low profit as a consequence of a fall in its product price, the value of marginal product of Labour falls. This implies a low payment (wage) for Labour.

  96. Tabansi Johnbosco chijindu says:

    Name: TABANSI JOHNBOSCO CHIJINDU
    REG NUMBER: 2021/245662
    ANSWERS
    1) UTILITY: 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 consumption of goods and services. Goods are desired because of their ability to satisfy Human wants. The concept of utility is used to Express consumers 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. . again utility is measured in utilis and is the maximum satisfaction derived from consumption of goods and services..
    2) types of utility according to school of thoughts include..
    a) TIME UTILITY.. this is the satisfaction derived by a consumer from goods and services at a particular time. This is to say that a commodity or service does not satisfy a need all the time. The more easily and quickly goods and services can be purchased and used at that time., The higher its perceived time utility. In addition time utility is always high in times of scarcity. For eg the purchase of ice water during the dry season. Will be higher than its purchase during the rainy season because the weather is always hot (during dry season) and people often desire something cold to quench their trust..
    B) FORM UTILITY: the transformation of goods from one form to another for goods to confer satisfaction when consumed is referred to as form utility. The transformation ability of goods and services into various needs and desires of a consumer, confers on the goods or services an increased added value (form utility) this means that some commodities do not have utility until they are transformed from one form to another. For eg flour cannot be consumed directly in other to derive satisfaction , its utility comes when used for the baking of cakes, bread etc.
    C) PLACE utility this can be obtained through the process of making goods or services more easily available to potential consumers. This implies that the easier it is to purchase a product, the more attractive it becomes. Thus, place utility is the ability of goods and services to satisfy a need within a location and it is a function of distribution channels and physical locations at which goods or services are sold. For eg. a bookshop has no satisfaction within a construction site but will satisfy a need if found within a citadel of learning..
    D) POSSESSION UTILITY:
    This refers to the satisfaction derived from the ownerships of goods and services. It explains the benefits one derives from owning and using a 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 eg, a man who owns a car has a greater satisfaction from his car than a man who borrowed it
    3) demand for
    The demand for a factor is not a direct demand but an indirect or derived demand. The demand for labour for example is not demand for labour himself but infact , Demand for goods and services which the labour produces. Thus when demand for goods increase, 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. When more of a factor is employed , its marginal productivity is likely to fall and hence its demand and price are also likely to become lower. 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. If the goods are being sold at high prices , the demand for the factors would also be higher…
    The modern theory of pricing of factors of production also know as demand and supply theory gives a satisfactory answer to the problem of determing factor prices. According v to the theory, just as the price of a commodity is determined by the forces of demand supply, the price of a factor of production is also determined by the demand for that factor and its supply

  97. ODOH CHIOMA VICTORIA says:

    NAME: ODOH CHIOMA VICTORIA
    DEPARTMENT: SOCIOLOGY AND ANTHROPOLOGY
    REG NO.: 2021/244151
    E-MAIL: victoriaodoh39@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)
    Cardinal school of thought
    Ordinal school of thought
    * Cardinal school of thought (Cardinal utility): It explains that the satisfaction level after consuming any goods and services can be scaled in term of countable numbers. example; pizza sam 60 utils of satisfaction, whereas burger gives him only to utils. utility is measured based on utils, it is less practical the theory was applied by prof. Marshall.
    * Ordinal school of thought (Ordinal utility): It explains that the satisfaction level after consuming any goods or services cannot be scaled in number, however the things can be arranged in the order of preference. It is ranked based on satisfaction, it is more practical and sensible. Example sam gets more satisfaction from a pizza as compared to that of a burger .The theory was applied by prof. JR Hicks.
    (3)
    The concept of labour market can be viewed as a ‘factor market’ . Labour market provide a way for firms and employers to find the employees they need. Therefore, demand for labour I’d a concept that illustrates the amount of labour a firm is willing to employ at a particular wage rate. However, the determination of equilibrium is 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.

  98. Udeji chiamaka favour says:

    Name:Udeji chiamaka favour
    Reg no:2021/245634
    Email address:chifavour8287@gmail.com
    Pubic administration and local government
    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.a.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.

    b.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.

  99. Udeji chiamaka favour says:

    Name:Udeji chiamaka favour
    Reg no:2021/245634
    Email address:chifavour8287@gmail.com
    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.a.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.

    b.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.

  100. Edoga Chinenye Mary says:

    Name: Edoga Chinenye Mary
    Department: Nursing Sciences
    Reg no: 2021/243506
    Date: 9th March ,2023.
    Answers:
    1. Utility is satisfaction derived from consuming goods. It is also the ability of goods and services to satisfy human wants.
    There are four main types of utility, they include:
    i. Time Utility: This is the satisfaction derived from consuming a particular commodity at a particular time.
    ii. Place Utility: This is the satisfaction derived based in how easy it is to get a particular commodity at a particular time.
    iii. Form Utility: Utility derived when you change a form of something into a thing that satisfies your want. For example flour can be transformed into making cake, bread, chin chin etc.
    iv. Possession Utility: It is the satisfaction derived from consuming products that you own.
    2. The two school of thoughts are:
    a. Cardinal School of thought
    b. Ordinal School of thought.

    a. Cardinal School of Thought: This school of thought emphasizes that utility can be measured using numbers ranging from zero to infinity. It said that utility is measured in imaginary units called ‘Utils’.
    b. Ordinal School of thought: This school of thought emphasizes that utility cannot be measured but it can be ranked. According to this school of thought, utility can be measured by ranking of preferences of a commodity when compared with each other.
    3.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, thus hiring more staff. And if demand for the firm’s output of goods and services decreases, in turn, it will require less labour and its demand for labour will fall, and less staff will be retained.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 labour and the number of workers willing to supply labour at that wage.

  101. Oke Mitchelle Ngozichukwuka says:

    Oke Mitchelle Ngozichukwuka
    sociology and anthropology
    2021/244761
    okemitchelle@gmail.com

    1. Briefly discuss the elementary theory of utility.
    The term utility refers to the amount of satisfaction derived from the consumption of a commodity at a particular time. Utility is the level of satisfaction a person derives from consuming a good or services. When the product or service is useful to the consumers needs and wants, they can achieve a certain level of utility from consuming it. The utility of a tin of milk is the amount of satisfaction derived from consuming it. Any commodity that has the power to satisfy human wants is said to posses utility. Students choose to study because they want to pass their exams. We eat something because we’re hungry. Utility is involved in everything we do and we get satisfaction from consuming or using goods or services. This is what 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 called ‘utils.’.
    A number of things should be noted about utility
    i. Utility is not the same as usefulness
    ii. utility has no ethical significance
    iii. utility is related to time
    iv. The amount of utility derived from a commodity at a particular time differs from one individual to the other
    There are different types of utility total utility , marginal utility and average utility.
    a. total utility: this refers to the amount of satisfaction derived from all units of a commodity consumed at a particular time.
    b. marginal utility: this refers to the additional satisfaction derived by consuming an extra unit of a commodity.
    c. Average utility: this is the the amount of satisfaction derived by a consumer per unit of commodity consumed

    2. Mention and discuss the different views of utility according to the two schools of thoughts which you have been taught.
    i. Ordinal utility: Economists 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 economic choices.
    iii. utility order the consumer can rank his preference based on expected level of satisfaction
    iv .preferences of consumers can be ranked in terms of indifference curve which connote the marginal rate of substitution of commodities.

    2b. Cardinal utility: The cardinal utility school of thought argues that the utility of a commodity can be measured. Some economists who belong to this school of thought argue that utility can be measured subjectively in units called “utils”. others suggest that utility can be measured in monetary units by relating it to the amount of money which the consumer is willing to pay for a given quality of a commodity at a particular time.

    3) Explain 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. 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.

  102. Name:Onyishi lovelyn chioma Matric no: 2021/242153 says:

    Qeastion number (1)
    Alfred marshal,s theory of utility
    The concept of utility is cardinal the price that a consumer is willing to pay for a good is an indication of the utility of that good to the consumer total utility which is the sum of the utility which a consumer derives from the consumption of the different unit of a good.
    Adam Smith’s theory of utility
    He considered and rejected the idea that demand must be related to utility, this may seem self evident ,the more useful a thing is the more satisfaction it gives, the more people would be willing to pay for it
    The 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.

    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.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.

    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.

    In ordinal utility terms, a person might eat the first slice of pizza, share the second slice with their roommate, save the third slice for breakfast, and use the fourth slice as a doorstop.
    That utility is one of the principal sources of beauty has been observed by every body, who has considered with any attention what constitutes the nature of beauty. The conveniency of a house gives pleasure to the spectator as well as its regularity, and he is as much hurt when he observes the contrary defect, as when he sees the correspondent windows of different forms, or the door not placed exactly in the middle of the building. That the fitness of any system or machine to produce the end for which it was intended, bestows a certain propriety and beauty upon the whole, and renders the very thought and contemplation of it agreeable, is so very obvious that nobody has overlooked it.(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.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.

    To begin, assume that an individual faces a set of consumption “bundles.” We assume that individuals have clear preferences that enable them to “rank order” all bundles based on desirability, that is, the level of satisfaction each bundle shall provide to each individual. This rank ordering based on preferences tells us the theory itself has ordinal utility—it is designed to study relative satisfaction levels. As we noted earlier, absolute satisfaction depends upon conditions; thus, the theory by default cannot have cardinal utility, or utility that can represent the absolute level of satisfaction. To make this theory concrete, imagine that consumption bundles comprise food and clothing for a week in all different combinations, that is, food for half a week, clothing for half a week, and all other possible combinations.

    The utility theory then makes the following assumptions:

    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. Mathematically, this property wherein an individual’s preferences enable him or her to compare any given bundle with any other bundle is called the completeness property of preferences.
    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. Mathematically, the more-is-better assumption is called the monotonicity assumption on preferences. One can always argue that this assumption breaks down frequently. It is not difficult to imagine that a person whose stomach is full would turn down additional food. However, this situation is easily resolved. Suppose the individual is given the option of disposing of the additional food to another person or charity of his or her choice. In this case, the person will still prefer more food even if he or she has eaten enough. Thus under the monotonicity assumption, a hidden property allows costless disposal of excess quantities of any bundle.
    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.
    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.
    If one thinks of preference orderings as comparative relationships, then it becomes simpler to construct examples where this assumption is violated. So, in “beats”—as in A beat B in college football. These are relationships that are easy to see. For example, if University of Florida beats Ohio State, and Ohio State beats Georgia Tech, it does not mean that Florida beats Georgia Tech. Despite the restrictive nature of the assumption, it is a critical one. In mathematics, it is called the assumption of transitivity of preferences.

    Whenever these four assumptions are satisfied, then the preferences of the individual can be represented by a well-behaved utility function.The assumption of convexity of preferences is not required for a utility function representation of an individual’s preferences to exist. But it is necessary if we want that function to be well behaved. Note that the assumptions lead to “a” function, not “the” function. Therefore, the way that individuals represent preferences under a particular utility function may not be unique. Well-behaved utility functions explain why any comparison of individual people’s utility functions may be a futile exercise (and the notion of cardinal utility misleading). Nonetheless, utility functions are valuable tools for representing the preferences of an individual, provided the four assumptions stated above are satisfied. For the remainder of the chapter we will assume that preferences of any individual can always be represented by a well-behaved utility function. As we mentioned earlier, well-behaved utility depends upon the amount of wealth the person owns.

    Utility theory rests upon the idea that people behave as if they make decisions by assigning imaginary utility values to the original monetary values. The decision maker sees different levels of monetary values, translates these values into different, hypothetical terms (“utils”), processes the decision in utility terms (not in wealth terms), and translates the result back to monetary terms. So while we observe inputs to and results of the decision in monetary terms, the decision itself is made in utility terms. And given that utility denotes levels of satisfaction, individuals behave as if they maximize the utility, not the level of observed dollar amounts.

    While this may seem counterintuitive, let’s look at an example that will enable us to appreciate this distinction better. More importantly, it demonstrates why utility maximization, rather than wealth maximization, is a viable objective. The example is called the “St. Petersburg paradox.” But before we turn to that example, we need to review some preliminaries of uncertainty: probability and statistics.
    Qeastion number( 2)
    (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) ordinary school of thought _ the ordinal approach to consumers 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 number.
    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. Consumers’ utility increases as the quantity consumed increases but not at equal rate because consumer has a saturation point in the consumption of particular commodity at a given time.

    AVERAGE UTILITY: This derived by dividing total utility by

    the units of the commodity consumed. That is, it 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 the total utility as a result of the consumption of additional unit of a commodity. MU = ∆TU/∆QTHE LAW OF DIMINISHING MARGINAL UTILITY

    The law of diminishing marginal utility states that, other things being equal, the marginal utility of 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 decrease in satisfaction may set in as more and more bottles of beer are consumed until he may be unable to consume anymore.

    UTILITY MAXIMIZATION
    Utility maximization is also known as equilibrium of the consumer. A point where a consumer derives maximum satisfaction when his marginal utility equates the price of the commodity consumed. That is, the additional utility derived from the consumption of additional commodity is equal to price of the commodity.

    In the case of one commodity, a consumer will maximize his satisfaction in the consumption of a particular commodity when the MU of that commodity equals the price of that commodity, eg MUx = Px

    In the case of two or more commodities, a consumer is said to be in equilibrium or maximizes his utility when the ratio of MU of the last unit of the commodities consumed should be equal to the ratio of the price. Alternatively, a consumer’s utility is maximized when the MU per amount spent on a product is equal to the MU per amount spent on any other product, as stated below:

    Mux/Px = Muy/Py = MUz/Pz

    where MUx = MU of commodity X

    Px = Price of commodity X

    MUy = MU of commodity Y

    Py = Price of commodity Y

    MUz = MU of commodity Z

    Pz = Price of commodity Z

    CONSUMER SURPLUS
    Consumer surplus is define 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 consumed 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.
    Qeastion number (3)
    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.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 .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.

    Equilibrium in the Labor Market
    In 2013, about 34,000 registered nurses worked in the Minneapolis-St. Paul-Bloomington, Minnesota-Wisconsin metropolitan area, according to the BLS. They worked for a variety of employers: hospitals, doctors’ offices, schools, health clinics, and nursing homes. This example below illustrate how demand and supply determine equilibrium in this labor market. The demand and supply schedules in Table 1 list the quantity supplied and quantity demanded of nurses at different salaries.

    This table shows how equilibrium is affected by demand and supply. The demand curve and the upward-sloping supply curve intersect at equilibrium salary.
    Figure 1. Labor Market Example: Demand and Supply for Nurses in Minneapolis-St. Paul-Bloomington. The demand curve (D) of those employers who want to hire nurses intersects with the supply curve (S) of those who are qualified and willing to work as nurses at the equilibrium point (E). The equilibrium salary is $70,000 and the equilibrium quantity is 34,000 nurses. At an above-equilibrium salary of $75,000, quantity supplied increases to 38,000, but the quantity of nurses demanded at the higher pay declines to 33,000. At this above-equilibrium salary, an excess supply or surplus of nurses would exist. At a below-equilibrium salary of $60,000, quantity supplied declines to 27,000, while the quantity demanded at the lower wage increases to 40,000 nurses. At this below-equilibrium salary, excess demand or a surplus exists.
    Annual Salary Quantity Demanded Quantity Supplied
    $55,000 45,000 20,000
    $60,000 40,000 27,000
    $65,000 37,000 31,000
    $70,000 34,000 34,000
    $75,000 33,000 38,000
    $80,000 32,000 41,000
    Table 1. Demand and Supply of Nurses in Minneapolis-St. Paul-Bloomington
    The horizontal axis shows the quantity of nurses hired. In this example, labor is measured by number of workers, but another common way to measure the quantity of labor is by the number of hours worked. The vertical axis shows the price for nurses’ labor—that is, how much they are paid. In the real world, this “price” would be total labor compensation: salary plus benefits. It is not obvious, but benefits are a significant part (as high as 30 percent) of labor compensation. In this example, the price of labor is measured by salary on an annual basis, although in other cases the price of labor could be measured by monthly or weekly pay, or even the wage paid per hour. As the salary for nurses rises, the quantity demanded will fall. Some hospitals and nursing homes may cut back on the number of nurses they hire, or they may lay off some of their existing nurses, rather than pay them higher salaries. Employers who face higher nurses’ salaries may also try to replace some nursing functions by investing in physical equipment, like computer monitoring and diagnostic systems to monitor patients, or by using lower-paid health care aides to reduce the number of nurses they need.

    As the salary for nurses rises, the quantity supplied will rise. If nurses’ salaries in Minneapolis-St. Paul-Bloomington are higher than in other cities, more nurses will move to Minneapolis-St. Paul-Bloomington to find jobs, more people will be willing to train as nurses, and those currently trained as nurses will be more likely to pursue nursing as a full-time job. In other words, there will be more nurses looking for jobs in the area.

    At equilibrium, the quantity supplied and the quantity demanded are equal. Thus, every employer who wants to hire a nurse at this equilibrium wage can find a willing worker, and every nurse who wants to work at this equilibrium salary can find a job. In Figure 1, the supply curve (S) and demand curve (D) intersect at the equilibrium point (E). The equilibrium quantity of nurses in the Minneapolis-St. Paul-Bloomington area is 34,000, and the equilibrium salary is $70,000 per year. This example simplifies the nursing market by focusing on the “average” nurse. In reality, of course, the market for nurses is actually made up of many smaller markets, like markets for nurses with varying degrees of experience and credentials. Many markets contain closely related products that differ in quality; for instance, even a simple product like gasoline comes in regular, premium, and super-premium, each with a different price. Even in such cases, discussing the average price of gasoline, like the average salary for nurses, can still be useful because it reflects what is happening in most of the submarkets.

    When the price of labor is not at the equilibrium, economic incentives tend to move salaries toward the equilibrium. For example, if salaries for nurses in Minneapolis-St. Paul-Bloomington were above the equilibrium at $75,000 per year, then 38,000 people want to work as nurses, but employers want to hire only 33,000 nurses. At that above-equilibrium salary, excess supply or a surplus results. In a situation of excess supply in the labor market, with many applicants for every job opening, employers will have an incentive to offer lower wages than they otherwise would have. Nurses’ salary will move down toward equilibrium.

    In contrast, if the salary is below the equilibrium at, say, $60,000 per year, then a situation of excess demand or a shortage arises. In this case, employers encouraged by the relatively lower wage want to hire 40,000 nurses, but only 27,000 individuals want to work as nurses at that salary in Minneapolis-St. Paul-Bloomington. In response to the shortage, some employers will offer higher pay to attract the nurses. Other employers will have to match the higher pay to keep their own employees. The higher salaries will encourage more nurses to train or work in Minneapolis-St. Paul-Bloomington. Again, price and quantity in the labor market will move toward equilibrium.

    Shifts in Labor Demand
    The demand curve for labor shows the quantity of labor employers wish to hire at any given salary or wage rate, under the ceteris paribus assumption. A change in the wage or salary will result in a change in the quantity demanded of labor. If the wage rate increases, employers will want to hire fewer employees. The quantity of labor demanded will decrease, and there will be a movement upward along the demand curve. If the wages and salaries decrease, employers are more likely to hire a greater number of workers. The quantity of labor demanded will increase, resulting in a downward movement along the demand curve.

    Shifts in the demand curve for labor occur for many reasons. One key reason is that the demand for labor is based on the demand for the good or service that is being produced. For example, the more new automobiles consumers demand, the greater the number of workers automakers will need to hire. Therefore the demand for labor is called a “derived demand.” Here are some examples of derived demand for labor:

    The demand for chefs is dependent on the demand for restaurant meals.
    The demand for pharmacists is dependent on the demand for prescription drugs.
    The demand for attorneys is dependent on the demand for legal services.
    As the demand for the goods and services increases, the demand for labor will increase, or shift to the right, to meet employers’ production requirements. As the demand for the goods and services decreases, the demand for labor will decrease, or shift to the left. Table 2 shows that in addition to the derived demand for labor, demand can also increase or decrease (shift) in response to several factors.

  103. Name Osita chinonso Veronica Reg no 2021/241468. Department public administration and local government says:

    1) utility can be defined as the total satisfaction a consumer derive from goods and services at a particular time and at a particular place.The word “utility ” is anonymous with the word satisfaction.we have four types of utility namely
    Time utility
    Place utility
    Form utility and
    Possession utility.
    2) i The cardinal school of thought
    Ii The ordinal school of thought
    i The cardinal school of thought says that utility can be measured by using figures, starting from zero to lnfinity , this means that goods and services which satisfies a consumer can be measured ,analysed and concluded simultaneously,it gives the producers and manufacturers the instinct that their goods are selling or nota and wether to improve on their production ethics.
    Under the cardinal school of thought we have the total utility (TU) which only depends on the quantity of goods and services.Average utility which is ascertained by dividing the total amount of utility derived by the total number of commodities consumed by the consumer,then the marginal utility further made us to understand that it is the additional satisfaction a consumer derive from the consumption of an additional unit of a particular commodity.
    Although consumers derive satisfaction from a product, there will be a time when that satisfaction turn into disatisfaction, which leads to the law of diminishing marginal utility which states that “as a consumer consumes more and more units of a commodity, utility of that commodity will increase up to a certain point when disutlity will set in as a result of continuous consumption of the same commodity .
    Maximum utility which is denoted by (Mu ) is the satisfaction preference a consumer consider while consuming any product, this is done based on the availability of income and the actual price of the goods, it’s statement is done in a tabular form.
    Ii The ordinal school of thought does not think that cardinal is right,it says that utility can not be measured,it states that that consumers make a scale of preference by choosing between various or different commodities which gives them the same level of satisfaction.This approach makes use of of indifference curve, the combination of indifference curve is known as indifference map.

    3) The demand for and pricing of productive factors based on the labour market states that labour market in the economy are known by the concept of demand and supply because the demand and supply for labour determine the wage or price paid for labour services .
    It is important to know that not only the direction in which quantity demanded will change when price changes, but also by how much.

  104. IFEDI AGATHA OBIAGERI 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.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._cardinal Utility
    _ordinal Utility
    CARDINAL 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.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.

  105. Emerie Mercy Ebere says:

    Name: Emerie Mercy Ebere
    Department: public administration and local government
    Faculty: social science
    Phone number:09136601310
    Reg number:2021/246681

    (1) Briefly discuss the elementary theory of utility? What is utility? utility is defined as the satisfaction that is derives from consuming a commodity or service at any particular time.
    (I)Form utility: refer to the change in the form or structure of a commodity during it’s manufacturing process in order to increase it’s utility.for example, change in the form of raw cotten to a clothing material.cotton in its raw form does not give satisfaction until it is changed to a clothing material.
    (ii) place utility: place utility involved chano of location of a commodity from one geographical area where it has little utility to another area where it’s utility is higher.
    (iii)Time utility:refer to the satisfaction a consumer will derives from the consumption of a particular commodity at a given time.
    (iv) Total utility :(Tu) refer to the total amount of satisfaction a consumer derivy from the consumption of a commdity at a given time .As a consumer user more and more of a commodity ,it’s utility increase until it get to a maximum point.
    (V).marginal utility (mu):refer to the additiona

    l satisfaction derives by consuming an extra unit of a commdity.there is therefore a change in the total utility as a result of the consumption of additional unit of commodity.

    (2) mention and discuss the different view of utility according to the school of thought which you have been taught?

    Cardinal utility
    Ordinary utility

    Cardinal utility of thought:it’s emphasis that utility believe in measuring the satisfaction which means that the quality of goods and services that satisfacty the need I a consumer can be evaluated through the use of a figure ranging from zero to infinity .it is utility where the satisfaction derives by consuming a product can be express numerically. Alfre mashell suggest measurements of utility in terms of money that consumer are willing to pay for a commdity
    ASSUMPTION Of CARDINAL APPROACH
    (1) utility is measurable
    (2)the customer is rationa
    (3) money income if the customer is hold constant
    APPlICATION OF CARDINAL UTILITY
    Marginalism: in Cardinal theory a product marginal utility sign is a like for all the mathematics form,,but it magnitude is not the same
    Intertemporal utility:in various representation of utility when people deduct the upcoming value of utility
    ORDINARY UTILITY OF THOUGHT: required that customer make a scale of preference by choosing between the various commdity that gives one the same level of satisfaction .this approach assume that utility can be ranked at various levels of consumption.This approach make use of indifferent curve that indicates the level of satisfaction attained by a consumer from the consumption of two commodity.A combination of indifferent curve is known as indifferent map.
    Different between Cardinal and ordinary utility
    (A)Quantitative. Qualitative
    (B)less. More
    (C)utils Rank

    (3) Explain the demand for and pricing of productive factor emphasis on the labour market?
    Demand: can be defined as the quality of good or service that a consumer are willing and able to buy at a given price and period of time.demand for labour is a concept that illustration the amount of labour a firm is willing to employ at a particular wage rate.However equibrium in the labour market will also depends on the supply of labour.
    *Demand for labour as a derives demand*
    Is a demand for a factor of Production that results from the demand for a product or a service that labour produce.

    *Factor affecting the demand for labour market*
    (1) labour productivity
    (2) change in technology
    (3) profitability of firms.
    *To the pricing product factor*
    Factor pricing is associated with the price that an enterprenuer pay to avail the service render by the factor of Production . A labour market is a place where worker and employee interact with each other.

  106. Name: EGWU CHIAMAKA EUNICE says:

    Name: Egwu chiamaka Eunice
    Reg no: 2021/243727
    Department: public administration and local government
    Level: 100

    1. The elementary theory of utility simply talks about satisfaction..satisfaction a consumer derives in consuming a particular good/services at a particular time which is its utility.
    .
    2. The Cardinals and ordinal School of thought namely..
    i. The cardinal school of thought emphasizes that utility can be measured, i.e when a consumer consumes a certain quantity of a commodity, he can evaluate his satisfaction with the use of figures ranging from 0 to infinity, utility is measure in “utils”

    ii. Ordinal School of thought emphasizes that utility cannot be measured unlike the cardinal School of thought, but that utility can be ranked according to preference of a consumer.
    .
    3. The demand for and pricing of productive factors, including labor, is determined by the interplay of various factors such as supply and demand, technological advancements, and economic policies. The labor market is an essential component of this equation as it involves the buying and selling of human labor, which is a critical input for producing goods and services.

    The demand for labor is determined by the demand for the goods and services produced by the labor. When businesses and consumers demand more goods and services, firms need to hire more workers to increase production. As a result, the demand for labor increases. Conversely, when the demand for goods and services decreases, firms reduce their production, and the demand for labor decreases.

    The pricing of labor, or the wage rate, is determined by the intersection of the demand and supply of labor. The supply of labor is determined by the number of workers willing and able to work at a particular wage rate. Generally, the supply of labor increases as the wage rate increases because workers are willing to supply more labor at higher wage rates.

    The demand for labor, on the other hand, decreases as the wage rate increases because firms may substitute other factors of production, such as capital, for labor when the cost of hiring workers becomes too high. The wage rate is therefore determined by the equilibrium point where the demand for labor and the supply of labor intersect.

    In addition to supply and demand, other factors such as skill level, education, and experience can also affect the pricing of labor. Skilled workers are generally in higher demand, and their wages are higher than those of unskilled workers. Furthermore, economic policies such as minimum wage laws, labor regulations, and taxes can also affect the demand for and pricing of labor.

    Overall, the demand for and pricing of labor in the productive factor market is determined by the interplay of supply and demand, technology, economic policies, and other factors that affect the productivity of labor.

  107. Ugwu venessa chisom says:

    Name:Ugwu venessa chisom
    Department: public administration and local government
    Course code:Eco 101
    REG No:2021/243735
    1. Elementary Theory of Utility
    The word “utility”means being useful or beneficial. Utility in economics is therefore the total value or satisfaction that consumer derives from purchasing and using a service or product.in layman’s terms it is the satisfaction that a consumer derives from the consumption of a commodity at a particular time.
    The Theory of Utility tries to explain the behavior of an individual or a consumer in the economy.utility theory argues that each person given a list of options can rank those options in their order of preference. Each person has a choice of his or her own.Thus, each person has different choices which are set,not changing over time.Utility theory relies on a few assumptions about consumers and their behavior .one of the assumption is that people can rank any number of options in the 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.
    Utility theory also assumes that a mix of goods is better.if a consumer vakies two items roughly equally,then a combination of the two offers more expected utility.
    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 behaves the way they do and make the purchases they make.
    2. The views of utility according to the two
    School of thoughts.
    The cardinal school of thought:The notion of cardinal utility was formulated by Neoclassical economists ,who hold that utility is measurable and can be expressed quantitatively or cardinally , i.e1,2,3,4 and so on.The traditional ecinomists 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.
    There are many difficulties in measuring utility numerically,ad the utility derived by the consumer from a good or service depends on a number of factors such as mood,interest ,taste, preference and much more.

    The ordinal school of thought:The ordinal utility is propounded by the morden economists,J.k Hikes,and RG.D Allen ,which states that it is not possible for consumers to express the satisfactions derived from the consumption of a commodity in absolute or numerical terms.
    Morden economists hold that utility being a psychological phenomenon cannot be measured quantitatively,theorically 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; such a person prefers tea to coffee and coffee to milk .he or she can tell subjectively ,his or her preference .

    3. The demand for and the pricing
    productive factors emphasizing on the
    Labour market.
    An Entrepreneur pays rent,wages,interest and profit availing the service of land, labour,capital and entreprise respectively.The theory of factor of production pricing deals with the price determination of different factors of production.labour market on the other hand refers to the place where workers and employees interact with each other .in the labour market employees compete to hire the best,and the workers compete for the best satisfying job.
    Since buying and selling takes place in the labour market ,the factors of production are present the land which the entrepreneur has inquired through rent,the capital he uses to start up the business ,the labour that puts it’s efforts in production (labour requires compensation to perform effectively) and the profit the entrepreneur makes after productive activities.
    At the end of the productive activity,the labour is compensated through the payment of wages and salaries and if much profit is made the entrepreneur is able to pay rent for the land being used and expands his business too. The failure of land to compensate labour would lead to inefficiency in production. The profit of an entrepreneur rests on labour for if there’s inefficiency in production low profit would be made by the entrepreneur.
    Labour market factors derives the supply and demand for labour.Those seeking employment will supply their labour in exchange of wages.business demanding labour from workers will pay for their times and skills

  108. OKEREKE CHUKWUEBUKA JOSEPH says:

    1) Utility is simply the satisfaction a consumer derives from consuming a particular good or service
    2) Cardinal school of thought: This is a predominant theory that believes that utility can be measured in utils.
    Ordinal School of thought: This theory believes that utility cannot be measured however it can be levelled
    3) I think u need to understand the two terms “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 refers the entrepreneur pays for availing these factors of production…how does it affect the labour Market??The labour Market is where workers,that is labour and it’s employee (the entrepreneur ) interact with each other…. what happens in the labour Market eg buying and selling and you can also discuss on the effect of low compensation from the entrepreneur on labour,u talk about the activities that happens in the labour market e.g labour market factors derived the supply and demand for labor..those seeking employment will supply their labour in exchange of wages etc..

  109. Sochimere Gift. says:

    1: Elementary theory of utility
    Utility is satisfaction an individual gets from consuming a product or service. Utility measures how much value a product purchased provide to a consumer.
    In economics, utility theory tries to explain the behaviour of individual consumers in an economy. Utility Theory argued that each person given a list of options can rank those options in a precise order of preference. This is because each person has different choices which are set not changing over time.
    For example: imagine two consumers, the first consumer prefers jellof rice while the second consumer prefers fufu over jollof rice. This preference or choice are set and will not change over time.

    2: Different views of utility according to the two school of thought namely
    A:- The ordinal school of thought
    B:- The cardinal school of thought

    A:- The ordinal school of thought:-
    This school of thought argues that utility is not measurable. When using ordinal utility consumers choose preference and not value to different products. In ordinal utility consumer know their preference and make decisions based on these feelings.
    B:- The cardinal school of thought:-
    This school of thought argues that utility can be measured. This means that the satisfaction of a goods or service can be measured from zero to infinity.

    3:- The demand for and pricing of productive Factors emphasizing on Labour market?
    Labour market like other goods market in the economy are governed by the forces of demand and supply. The supply and demand for labour determines the wage or price paid for labour services. Like all prices the price for labour(the wage) depend on supply and demand.

    Name:- Ogbonna Sochimere Gift
    Reg no:- 2021/245671
    Department: – Public administration and local government

  110. Okeke Daniel Ayomide says:

    Name: OKEKE DANIEL AYOMIDE
    Reg No: 10574211FD
    Email: olasunkanmidaniels28@gmail.com
    Department: Economics
    Course: Eco 101.

    Answers to the assignment

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

    Question 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.
    What is the concept of 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.

    question 3
    The demand for 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.
    The type of factors of production employed is influenced by the type of product produced, the productivity of the factors and their cost. A firm producing a standardised model of car is likely to be very capital intensive whereas a beauty salon is likely to be labour intensive.

    When factors of production are substitutes, a rise in the productivity or fall in the cost of one of them may result in a change in the combination of resources being employed. A fall in the price of capital goods, for example, might lead to the replacement of some workers with machines.

  111. Dimeze Chisom Emmanuella (reg no)2021/243500 (nursing science) says:

    Question 1
    Briefly discuss the 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.

    Question 2
    Mention and discuss the different views of utility according to the two schools 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.

    b)ORDINAL SCHOOL OF THOUGHT:
    Ordinal utility does not require that the consumer should be in a position to measures the utility from different goods or different combinations of goods.
    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.

    Question 3
    Explain the demand for and pricing of productive factors emphasizing in 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.

  112. 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.

  113. 1. THE ELEMENTARY THEORY OF UTILITY:

    Utility refers to the ability of goods and services to satisfy unlimited human wants. Goods are desired because of their ability to satisfy human wants. The concept of utility is used to express consumers tastes and preferences. The analysis of consumer taste and preferences is a crucial step in determining how a consumer maximizes satisfaction in spending income. Thus when a consumer derives satisfaction from consuming goods and services, it can be said that the goods and services consumed or utilized possess utility, which is relative to the consumer depending on time, place, form, and possession.

    2.THE DIFFERENT VIEWS OF UTILITY ACCORDING TO THE TWO DIFFERENT SCHOOLS OF THOUGHT:

    The different views of utility according to the two different schools of thought are;
    I. Cardinal School of Thought
    II. Ordinal School of Thought

    I. Cardinal School of Thought: This school of thought emphasizes that utility is measurable. This means that the quantity of goods and services that satisfy the needs of a consumer can be calculated through the use of figures ranging from zero to infinity.

    II. Ordinal School of Thought: Here, it is required that the consumer makes a scale of preference by choosing between various commodities that give the same level of satisfaction. It assumes that utility can be ranked at various levels of consumption.

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

    The demand for a productive factor is not a direct demand but an indirect or derived demand. The demand for labour is not demand for labour itself but infact, demand for the goods and services which the labour produces. Thus, if demand increases the demand for factors which produce those goods will also rise. If the demand for goods is elastic, the demand for factors would also be elastic. Similarly when the demand for goods is inelastic, the productive factor would also be inelastic.
    Suppose that an increase in price of rice has made rice production more profitable than before. This would be because the increase in the price of rice will increase the value of the marginal product of labour. That is, with higher price, the added output from an extra worker is more valuable than before. Rice farmers would want to increase production to take advantage of the increase in price. To do so they would hire more workers.

  114. CHUKWUMA FAVOUR CHIDERA says:

    Name: Chukwuma Favour Chidera
    Reg no: 2021/242783
    (1) The elementary theory of utility: Utility refers to the ability of goods and services to satisfy unlimited human wants . It can also be seen as the satisfaction one derives from a good or service rendered.
    The concept of utility is used to express consumer’s tastes and preference . Also, the utility a consumer derives from a commodity can be measured by the consumer’s attitude or behavior.
    (2). Cardinal school of thought: This school of thought emphasizes that utility is measurable . That is to say that the quantity of goods or services that satisfies the need of the consumer can be evaluated through the use of numbers ranging from zero to infinity.
    Cardinal school of thought also encompasses assumptions derived from total utility, marginal utility and average utility .
    (2)(b). Ordinal school of thought: This school of thought assumes that utility can be ranked at various levels of consumption . It makes use of an indifference curve that indicates the level of satisfaction a consumer derives from the consumption of a commodity. A combination of indifference curves is known indifference map.
    (3). The demand for and pricing of production factor gives a satisfactory answer to the problem of the factor price . just as the price of a commodity is determined by forces of demand and supply , the price of commodities in the labour market is governed by forces of demand and supply.

  115. (1) utility theory is based on the fact that satisfaction which consumers derived from consumption be of goods and services in economics, utility theory tries to explain the behaviour of individual consumers in an economy . Utility theory argues that each person, given a list of options, can rank those options precise order of preference. Each person has different choices which are set, not changing over time.
    Utility theory in economic 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 be closely correlated to its price. An item such as gold, which is very useful and thus has great utility ( combined with it’s scarcity) it 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 usefulness of thing
    THE FOUR BASIC ASSUMPTION 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 of one good and customers are rational decisions makers
    (1) Ranking options : An individual can rank any number of options based on their utility and the amount of satisfaction they will gain from each
    (2) 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 item.
    (3) 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
    (4) Rational consumers: it is generally assumed that individuals are rational decision makers who will always make the best choice is light of utility.
    THERE ARE DIFFERENT TYPE OF UTILITY
    ( 1) form utility , worth of the goods or service based on the combined resources it look to create the good or service.
    (2) Time utility: the utility that is found in offering a good or service to consumers at the right time.
    (3) Place utility: Refers to offering a good or service in the right place or consumers easy accessibility
    (4) possession utility: The satisfaction a consumer gain from owning a certain product/ good.

    (2)

    The different views of utility according to the school of thought are
    (1) Cardinal school of thought
    (2) ordinal school of thought

    (1) 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 this satisfaction through the use of figures which range from zero to infinity
    ASSUMPTION OF 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

    (2) The ordinal school of thought:this is base on the fact that 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 comared to another.

    ASSUMPTIONS Of ORDINAL UTILITY APPROACH
    (1) Rationality of consumer:This analysis assumes the rational consumers whose objective is to maximize the utility under the budget constraint.
    (2) 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 expressed his or her preference for the various bundles of goods commodities
    It is not obligatory to undertake that utility is quantitively quantification.
    (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 acknowledge as Transitivity in preference
    (4) 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 BA .it is called consistency in choice
    (5) Non satiety: The consumer always prefes more over 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 s called non satiety

    (3)
    FACTORS AFFECTING THE LABOUR MARKET
    (1) Labour productivity: if labour productivity increases, firm will demand more labour at each wage rate and the firms demand for Labour itseif will increase. This would shift the labour demand curve outwords
    (2) Change 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), firm would demand an increase amount of workers and substitute the other factors of production with new Labour.
    (3) changes in the number of firms:changes in the numbers of firms operating in the industry can have an immense effect on the overall labour market. This is because demand for a certain factors can be determined by the number of firms currently utilizing that factor.
    (4) Changes in demand for a product that Labour produces: if there is an increase in demand for new vehicle, 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 vehicle. This would shift the labour demand curve outwords
    (5) profitability of firms: if a firms profitability increase, 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 by reduce the demand for Labour and shift the demand curve to labour inwards

  116. Madu Ugochi Juliet says:

    Name:Madu Ugochi Juliet
    Reg no:2021/246120
    Course:Eco 101
    Dept:Public Administration And Local Governments
    Faculty:social sciences

    1) Briefly discussion the elementary theories of utility.

    Utility is interested in people’s preferences or value and with assumption about a person’s preference in numerically useful ways,it can also be said as a theory postulated in economics to explain behavior of individual based on the premises people can constantly rank order their choices depending upon their preferences

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

    A) Cardinal school of thought
    B) Ordinal school of thought

    A) Cardinal school of thought:Cardinal utility determine the satisfaction of a commodity used by an individual and can be supported with a numerical value.
    Cardinal also assumes that marginal utility decreases or diminishes with each extra unit of consumption known as law of diminishing majority utility.while ordinal states that

    B) Utility cannot be measured,satisfaction which a consumer derives from the consumption of products or services cannot be measured numerically .
    Ordinal states that satisfaction of user goods can be ranked in order of preference but cannot be evaluated.

    The measuring term for cardinal and ordinal utility is utils and ranks respectively,utils is the unit of utility and ranks determines the preference of a product compared to the other product in the market.

    3) Explain the demand for and pricing of productive factors,emphasizing on the labour market.
    Decision related to demand and pricing are usually called marketing decisions.Economic reasoning and concept provides much of the theoretical foundation for marketing practice,related to labor market is an economic function in an economy function with demand and supply of labor in the market,labour demands is forms demand,for labor and supply is the worker’s supply of labour.

  117. 1.How much enjoyment a specific consumer gets from a good or service determines its usefulness. Utility is not a property that a good or service naturally possesses.
    Total utility is a notion used to describe how many utility units a consumer receives after using a product, service, or activity. Consuming one extra unit of a good, service, or activity results in an increase in overall utility known as marginal utility.
    The marginal usefulness of an item or service decreases as consumer consumption rises.
    The goal of utility maximization is to get the most out of a given budget.
    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. If labor productivity rises, businesses will require more workers at each wage bracket and more workers overall. The labor demand curve would be shifted outward as a result.

    alterations in technology
    Depending on the situation, changes in technology may lead to an increase or decrease in the demand for labor.

    Firms would require more workers and replace the other components of production with fresh labour if technical advancements enhanced the productivity of labor relative to the other factors of production (such as capital).

  118. Ohama Henry Chiemerie says:

    Reg no:10600712JA Department:PALG

    1. Utility theory is an economic hypothesis that postulates the fact that consumers make purchase decisions based in the degree of utility or satisfaction they obtain from a given item. This means that the higher the utility level the higher the item will be prioritized in the consumer’s budget.

    2.The two school of thoughts are:
    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.

    B.Ordinal school of thought: The ordinal approach to consumer’s utility states that the utility 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.

    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 productive factors emphasizing on the labour market are ;
    1.Changes in production level, in the aggregate, it is measured by economic growth.
    2.Changes in production processes and technological advances.
    3.Quality of human resources.
    4.Number of companies in the market.
    5.Government regulations such as local labor recruitment and wage policies.

  119. Adeboye Samuel kosisochukwu says:

    Adeboye Samuel kosisochukwu
    2021/242143
    Public administration and local government.
    1, utility can be defined as the satisfaction derived from consuming a given commodity. Hence when a consumer derives satisfaction from the consumption of a commodity, it it can be said that the commodity or service possesses utility.
    2- Cardinal school of thought and
    Ordinal school of thought
    *Cardinal school of thought, this approach emphasis that utility is measurable. That is after consuming a giving 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,- it states that it’s not possible for consumers to express the satisfaction derived from a commodity in absolute or numerical terms so utility can be ranked with scale of preference or order of important.
    3,-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 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.
    If the demand of a firm output increases the firm will demand more labour, thus thus hiring more staff .And if demand for the firm’s output of goods and services decreases ,it will acquire less labour and it’s demand for labour will fall and less workers will be retained.labour market factors drive the supply and demand for labour.

  120. Udeji chiamaka favour says:

    Name:Udeji chiamaka favour
    Reg no:2021/
    Email address:chifavour8287@gmail.com
    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

  121. IKE Precious uchechukwu says:

    1. The element theory of utility: it is a theory postulated in economies to explain behavior of individual based on the premised people and can consistently rank orders choices depending upon their preference.

    2. * Utility refers to the ability of goods or service to satisfy only unlimited human wants.
    * This can also be reviewed as satisfaction, pleasure or fulfillment an individual drives from the consumption of goods and service.
    * Utility is the amount of satisfaction a person derives from the consumption of a commodity or service at any given time.

    3. The demand for labour is influenced by the level of economic activities, the productivity of level and the relative cost of labour When compared to capital inputs. Unlike other markets, The label market is a little different. Films demand in labor market,whilst consumer supply the labour market.

  122. ANI Juliet Tochukwu . 2020/244371. 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 measure quantitative.
    2. Mention and discuss the different views of utility according to the two schools of thought which you have been taught.
    a). Cardinal school of thought.
    b). Ordinal school of thought.
    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 ranges from zero to infinity.
    Ordinal school of thought emphasizes that utility is classified based on scale of preference.It is not measurable.
    3). Explain the demand for pricing of productive factor emphasizing on the labour market.
    If the labour productivity increases, firms will demand more labour at each wage and the firm’s demand for labour itself will increase.This would shift the labour demand curve outwards.

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

    Utility may be defined as the satisfaction that a consumer derives from consuming a commodity or service at any particular time or place.in other words, it’s also refers to the amount of satisfaction a person derives from the consumption of a commodity or service at any given time. A commodity or service that possess utility is useful to the consumer in the sense that what is useful to Mr B may not be useful to Mr C.
    Utility is therefore relative to a consumer and the variations among the individuals or consumers depend on time, place and form.
    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.
    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.
    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.
    3. Firstly , labour market can be defined as a market in which buyers and sellers of labour are In close contact during which the wages and other conditions of services are determined and agreed upon . labour us the factor of production which is usually bought and sold in the market.
    Demand for labour:it can be defined as the total number of workers employers are willing and ready to employ or hire at a particular time and at a given wage rate. The demand for labour is a derived demand , because labour is not required for it’s own sake but for what it can help to produce.
    Efficiency of labour:can be defined as the ability of labour to increase output without increasing the quantity of labour.increase in efficiency is usually expressed in terms of increase in output of labour within a shorter period of time without any fall in the quality of goods and services produced.if the factors of production are efficient as labour then production will be high.

  124. Ezema Maureen Ebere reg.no.2021/245684 says:

    1. Utility theory is based on the fact that satisfaction which consumer drived from consumption of goods and services can be measure quantitative.
    Utility is amount of satisfaction that a consumer derives from the consumption of goods and services at a particular time.

    2. Cardinal utility is the idea of measuring economic value through imaginary units known as “utils”
    Ordinal utility States that satisfaction of a consumer get after consuming a good or service cannot be scaled in numbers where as these things can be arranged in the order of preference.
    Cardinal utility is quantitative
    Ordinal utility is qualitative
    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. If wage rate increase demand for labour will fall and supply will rise which may cause competition among labourers. Contrary to it if the wage rate falls then supply of labour will fall and demand will rise which may cause competition among producers to employ more and more labourers.

  125. Okomor Grace Oghenemrevwe says:

    Name: Okomor Grace Oghenemrevwe
    Reg no. 2021/242477
    Department: Nursing science
    Level: 100

    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.

    The utility theory then makes the following assumptions:

    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.

    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.

    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.

    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. 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:
    This 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.

    Assumptions of Ordinal Utility Approach;

    Rationality: It is assumed that the consumer is rational who aims at maximizing his level of satisfaction for given income and prices of goods and services, which he wish to consume. He is expected to take decisions consistent with this objective.

    Transitivity and Consistency of Choice: The consumer’s choice is expected to be either transitive or consistent. The transitivity of choice means, if the consumer prefers commodity X to Y and Y to Z, then he must prefer commodity X to Z. In other words, if X= Y, Y = Z, then he must treat X=Z. The consistency of choice means that if a consumer prefers commodity X to Y at one point of time, he will not prefer commodity Y to X in another period or even will not consider them as equal.

    Nonsatiety: It is assumed that the consumer has not reached the saturation point of any commodity and hence, he prefers larger quantities of all commodities.

    Diminishing Marginal Rate of Substitution (MRS): The marginal rate of substitution refers to the rate at which the consumer is ready to substitute one commodity (A) for another commodity (B) in such a way that his total satisfaction remains unchanged. The MRS is denoted as DB/DA. The ordinal approach assumes that DB/DA goes on diminishing if the consumer continues to substitute A for B.

    3
    Demand for Labour in Productivity
    This 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.

  126. OBIORAH CHIOMA MERIT says:

    Name:Obiorah Chioma merit
    Reg No:2021/241673
    Email Address: chiomamerit04@gmail.com

    1. THE ELEMENTARY THEORY OF UTILITY:

    Utility refers to the ability of goods and services to satisfy unlimited human wants.In economics, utility refers to the satisfaction levels consumers receive from buying and using a product or service. According to utility theory, people make purchase decisions based on the degree of satisfaction they get from an item or service.Goods are desired because of their ability to satisfy human wants. The concept of utility is used to express consumers tastes and preferences. The analysis of consumer taste and preferences is a crucial step in determining how a consumer maximizes satisfaction in spending income. Thus when a consumer derives satisfaction from consuming goods and services, it can be said that the goods and services consumed or utilized possess utility, which is relative to the consumer depending on time, place, form, and possession.

    2.THE DIFFERENT VIEWS OF UTILITY ACCORDING TO THE TWO DIFFERENT SCHOOLS OF THOUGHT:

    The different views of utility according to the two different schools of thought are;
    I. Cardinal School of Thought
    II. Ordinal School of Thought

    I. Cardinal School of Thought: This school of thought emphasizes that utility is measurable. 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: Here, it is required that the consumer makes a scale of preference by choosing between various commodities that give the same level of satisfaction. It assumes that utility can be ranked at various levels of consumption.

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

    The demand for a productive factor is not a direct demand but an indirect or derived demand. The demand for labour is not demand for labour itself but infact, demand for the goods and services which the labour produces. Thus, if demand increases the demand for factors which produce those goods will also rise. If the demand for goods is elastic, the demand for factors would also be elastic. Similarly when the demand for goods is inelastic, the productive factor would also be inelastic.
    Suppose that an increase in price of rice has made rice production more profitable than before. This would be because the increase in the price of rice will increase the value of the marginal product of labour. That is, with higher price, the added output from an extra worker is more valuable than before. Rice farmers would want to increase production to take advantage of the increase in price. To do so they would hire more workers.

  127. Tabansi Johnbosco chijindu says:

    Name Tabansi johnbosco chijindu
    Registration number 2021/245662
    Question 1
    Answers
    UTILITY is the 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. The concept of utility is used to express consumer’s tastes and preference. Moreover utility is also defined as the maximum satisfaction derive from the consumption of goods and services and is measured in utilis..
    Question 2
    Answers
    The kind of utlity according to the school of thoughts.
    I) time utlity.. this is the satisfaction derived by a consumer from goods and services at a particular time. Time utility is always high in times of scarcity. For eg. The purchase of iced water during the dry season will be higher than its purchase during the rainy season because weather is always hot (during dry season) and people often desire something cold to quench their thirst..
    ii)form utlity. The transformation of goods from one form to another for goods to confer satisfaction when consumed is referred to as form utlity.. for example flour cannot be consumed directly in other to derive satisfaction its utlity comes when used for the baking of cakes, breads .
    Place utlity
    This can be obtained through the process of making goods and services more easily available to potential consumer’s. For eg a bookshop has no satisfaction within a construction site but will satisfy a need if found within a citadel of learning.
    Possession utlity. 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 utlity.
    3) demand for.
    This demand for a factor is not a direct demand but an indirect or derived demand. The demand for labour for example is not demand for labour himself but infact, demand for goods and services which labour produces. Thus when demand for goods increases the demand for factors which produce those goods would also rise. If demand for goods is elastic , the demand for factors would be elastic as well similarly when demand for goods is inelastic the factor which produces will also be inelastic..
    B) labour markets 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

  128. Kalu Valentina Onyinyechi says:

    Kalu Valentina Onyinyechi
    2021/246562
    Economics department

    1: Utility is defined as the satisfaction a consumer derived from consuming a particular product at a particular time. It is the satisfaction derived from a product, it is based on the value, usefulness or what that is attributed to a certain good or service. It captures the usefulness and satisfaction found in using a product.

    2: Cardinal School of thought
    Ordinal school of thought

    * Cardinal School of thought is an approach that 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 0 to infinity . Total utility depends on the quantity consumed by a consumer

    * Ordinal school of thought believes that the satisfaction level cannot be measured or evaluated but however it can be levelled or ranked. This approach argues that utility is completely a psychological element and it cannot be expressed in cardinal numbers.

    3:. Factors of production can be defined as elements used in producing goods and services. The type of factors of production employed is influenced by the type of product produced and productivity of the factors and their cost.
    A firm producing a standard model of car is likely to be a very capital-intensive whereas a beauty salon is likely to be labour-intensive. When factors of production are substitute a rise in the or productivity or fall in the cost of one of them will result in a change in the combination of resources being employee. Productivity is a key factor influencing demand. For labour in terms of skilled labour,the concentration of firms or industries will lead to increase in demand for labour.
    Labour market is define as a place where employees and workers are in close contact with each other or interact with each other. The demand for labour is defined as the number of workers that are willing and able to be hired for work at a particular time and given wage rates. Labour market describes the amount and market wage rate workers and employers settle upon at any given time.

  129. ONWUSOBA CHIBUIKE says:

    NAME :ONWUSOBA CHIBUIKE
    DEPT: PALG
    FACULTY: SOCIAL SCIENCE
    REG NUMBER:2021/243725
    COURSE:ECO 101

    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 .Cardinal school of thought
    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.

    Ordinal school of thought
    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.

    3. In the labor market, households are on the supply side of the market and firms 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.

    In the demand and supply analysis of labor markets, the price can be measured by the annual salary or hourly wage received. The quantity of labor can be measured in various ways, like number of workers or the number of hours worked.
    Factors that can shift the demand curve for labor include: a change in the quantity demanded of the product that the labor produces; a change in the production process that uses more or less labor; and a change in government policy that affects the quantity of labor that firms wish to hire at a given wage. Demand can also increase or decrease (shift) in response to: workers’ level of education and training, technology, the number of companies, and availability and price of other inputs.

    The main factors that can shift the supply curve for labor are: how desirable a job appears to workers relative to the alternatives, government policy that either restricts or encourages the quantity of workers trained for the job, the number of workers in the economy, and required education.

  130. Onuorah Ngozi Gift. Reg.no 2021/245670 PALG says:

    1. Meaning 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”.

    In short, when a commodity is capable of satisfying human wants, we can conclude that the commodity has utility.

    How to Measure Utility?
    After understanding the meaning of utility, the next big question is: How to measure utility? According to classical economists, utility can be measured, in the same way, as weight or height is measured. For this, economists assumed that utility can be measured in cardinal (numerical) terms. By using cardinal measure of utility, it is possible to numerically estimate utility, which a person derives from consumption of goods and services. But, there was no standard unit for measuring utility. So, the economists derived an imaginary measure, known as ‘Util’.

    Utils are imaginary and psychological units which are used to measure satisfaction (utility) obtained from consumption of a certain quantity of a commodity.

    Example – Measurement of satisfaction in utils:

    Suppose you have just eaten an ice-cream and a chocolate. You agree to assign 20 utils as utility derived from the ice-cream. Now the question is: how many utils be assigned to the chocolate? If you liked the chocolate less, then you may assign utils less than 20.
    However, if you liked it more, you would give it a number greater than 20. Suppose, you assign 10 utils to the chocolate, then it can be concluded that you liked the ice-cream twice as much as you liked the chocolate.

    One more way to measure utility:

    Utils cannot be taken as a standard unit for measurement as it will vary from individual to individual. Hence, several economists including Marshall, suggested the measurement of utility in monetary terms. It means, utility can be measured in terms of money or price, which the consumer is willing to pay.

    In the above example, suppose 1 util is assumed to be equal to Rs. 1. Now, an ice-­cream will yield utility worth Rs. 20 (as 1 util = Rs. 1) and chocolate will give utility of Rs. 10. This utility of Rs. 20 from the ice-cream or f I0 from the chocolate is termed as value of utility in terms of money.
    The advantage of using monetary values instead of utils is that it allows easy comparison between utility and price paid, since both are in the same units.

    It must be noted that it is impossible to measure satisfaction of a person as it is inherent to the individual and differs greatly from person-to-person. 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:
    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
    n = Number of units consumed

    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
    Where: MUn = Marginal utility from nth unit; TUn = Total utility from n units;

    TUn-1 = Total utility from n – 1 units; n = Number of units of consumption

    MU of 3rd ice-cream will be: MU3 = TU3 – TU2 = 46 – 36 = 10 utils One More way to Calculate MU

    MU is the change in TU when one more unit is consumed. However, when change in units consumed is more than one, then MU can also be calculated as:

    ATU

    MU = Change in Total Utility/ Change in number of units = ∆TU/∆Q

    Total Utility is Summation of Marginal Utilities:
    Total utility can also be calculated as the sum of marginal utilities from all units, i.e.

    TUn= MU1 + MU2 + MU3 +……………………… + MUn or simply,

    TU = ∑MU

    2. 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

    3. Labor Demand and Supply in a Perfectly Competitive Market
    In addition to making output and pricing decisions, firms must also determine how much of each input to demand. Firms may choose to demand many different kinds of inputs. The two most common are labor and capital.
    The demand and supply of labor are determined in the labor market. The participants in the labor market are workers and firms. Workers supply labor to firms in exchange for wages. Firms demand labor from workers in exchange for wages.

    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.

    Marginal revenue product of labor. When the firm knows the level of demand for its output, it determines how much labor to demand by looking at the marginal revenue product of labor. The marginal revenue product of labor (or any input) is the additional revenue the firm earns by employing one more unit of labor. The marginal revenue product of labor is related to the marginal product of labor. In a perfectly competitive market, the firm’s marginal revenue product of labor is the value of the marginal product of labor.

    For example, consider a perfectly competitive firm that uses labor as an input. The firm faces a market price of $10 for each unit of its output. The total product, marginal product, and marginal revenue product that the firm receives from hiring 1 to 5 workers are reported in tables.

    The marginal revenue product of each additional worker is found by multiplying the marginal product of each additional worker by the market price of $10. The marginal revenue product of labor is the additional revenue that the firm earns from hiring an additional worker; it represents the wage that the firm is willing to pay for each additional worker. The wage that the firm actually pays is the market wage rate, which is determined by the market demand and market supply of labor. In a perfectly competitive labor market, the individual firm is a wage‐taker; it takes the market wage rate as given, just as the firm in a perfectly competitive product market takes the price for its output as given. The market wage rate in a perfectly competitive labor market represents the firm’s marginal cost of labor, the amount the firm must pay for each additional worker that it hires.

    The perfectly competitive firm’s profit‐maximizing labor‐demand decision is to hire workers up to the point where the marginal revenue product of the last worker hired is just equal to the market wage rate, which is the marginal cost of this last worker. For example, if the market wage rate is $50 per worker per day, the firm—whose marginal revenue product of labor is given in Table —would choose to hire 3 workers each day.

    The firm’s labor demand curve. The firm’s profit‐maximizing labor‐demand decision is depicted graphically in Figure .

    This figure graphs the marginal revenue product of labor data from Table along with the market wage rate of $50. When the marginal revenue product of labor is graphed, it represents the firm’s labor demand curve. The demand curve is downward sloping due to the law of diminishing returns; as more workers are hired, the marginal product of labor begins declining, causing the marginal revenue product of labor to fall as well. The intersection of the marginal revenue product curve with the market wage determines the number of workers that the firm hires, in this case 3 workers.

    An individual’s supply of labor. An individual’s supply of labor depends on his or her preferences for two types of “goods”: consumption goods and leisure. Consumption goods include all the goods that can be purchased with the income that an individual earns from working. Leisure is the good that individuals consume when they are not working. By working more (supplying more labor), an individual reduces his or her consumption of leisure but is able to increase his or her purchases of consumption goods.

    In choosing between leisure and consumption, the individual faces two constraints. First, the individual is limited to twenty‐four hours per day for work or leisure. Second, the individual’s income from work is limited by the market wage rate that the individual receives for his or her labor skills. In a perfectly competitive labor market, workers—like firms—are wage‐takers; they take the market wage rate that they receive as given.

    An individual’s labor supply curve. An example of an individual’s labor supply curve is given in Figure .

    As wages increase, so does the opportunity cost of leisure. As leisure becomes more costly, workers tend to substitute more work hours for fewer leisure hours in order to consume the relatively cheaper consumption goods, which is the substitution effect of a higher wage.

    An income effect is also associated with a higher wage. A higher wage leads to higher real incomes, provided that prices of consumption goods remain constant. As real incomes rise, individuals will demand more leisure, which is considered a normal good—the higher an individual’s income, the easier it is for that individual to take more time off from work and still maintain a high standard of living in terms of consumption goods.

    The substitution effect of higher wages tends to dominate the income effect at low wage levels, while the income effect of higher wages tends to dominate the substitution effect at high wage levels. The dominance of the income effect over the substitution effect at high wage levels is what accounts for the backward‐bending shape of the individual’s labor supply curve.

    Market demand and supply of labor. Many different markets for labor exist, one for every type and skill level of labor. For example, the labor market for entry level accountants is different from the labor market for tennis pros. The demand for labor in a particular market—called the market demand for labor—is the amount of labor that all the firms participating in that market will demand at different market wage levels. The market demand curve for a particular type of labor is the horizontal summation of the marginal revenue product of labor curves of every firm in the market for that type of labor. The market supply of labor is the number of workers of a particular type and skill level who are willing to supply their labor to firms at different wage levels. The market supply curve for a particular type of labor is the horizontal summation of the individuals’ labor supply curves. Unlike an individual’s supply curve, the market supply curve is not backward bending because there will always be some workers in the market who will be willing to supply more labor and take less leisure time, even at relatively high wage levels.

  131. Nwali mary lucia says:

    1:utility theory is the theory which explains the behaviours of individual based on premise people can consistently rank order their choices depending upon their preference.
    2:cardinal school of thought strongly believed tgat consumer can measure accurately the level og satisfaction being derived from the consumption of a commodity thrreby coming up with assumption of
    i:rationality
    ii:cardinal uyility
    iii:constsnt marginal utility of money
    iv:Diminishing marginsl utility of money
    v: total uyility of basket of goods
    2i:ordinal school of thought believed that tge consumer cannot measure the level of satisfaction accurately but can only rank the order of his preferences for the choice of a paticular commodity and they also held some assumption
    i:Rationality
    ii:ordinal utility
    iii:diminishing marginal rate of substitution
    iv:consistency and transivity of choice
    3:the demand for and pricing of productive factor is seen as tge amount of labour that employees seek to hire during a given period at a paticular wage rate

  132. [10/03, 8:38 am] tobennadaniel84@gmail.com: 1. Elementary Theory of Utility…..
    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.
    [10/03, 8:40 am] tobennadaniel84@gmail.com: 2. VIEWS OF UTILITY…
    Cardinal Utility Economics Examples
    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.

    Ordinal Utility Economics Examples
    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.

    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. This concept naturally affects the demand curve in the following illustrated way:

    The more an individual consumes, the less the need.

    Graph showing how marginal utility decreases as consumption increases.
    [10/03, 8:41 am] tobennadaniel84@gmail.com: 3. DEMAND AND PRICING OF PRODUCTIVE FACTORS……
    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.

  133. Eziekwe Chidera Francisca says:

    Name: Eziekwe Chidera Francisca
    Reg no: 2020/241153
    Dept: Science Laboratory Technology (Bch option)
    Course: Eco 101

    1a. Total utility: This is the total amount of satisfaction a consumer derives from the consumption of several quantities of a commodity. TU= Average utility × Quantity

    1b. Average utility: This is the satisfaction that is obtained by a consumer per unit of commodity consumed. Av.utility=TU/Quantity

    1c. Marginal utility: This is an additional satisfaction a consumer derives from consuming an extra commodity. MU=∆T/∆C or ∆T= T2-T1

    2. Cardinal school of thought
    Ordinal school of thought
    * Cardinal school of thought 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.
    * Ordinal school of thought states that the level of satisfaction obtained by a consumer, consuming various commodities cannot be measured in numbers but can be arranged in the order of preference. For instance, the scale of preference, which is the most pressing need of a consumer.

    3. The law of demand is applied in labor market this way: The higher the salary or wage, that is, a higher price in labor market which leads to a decrease in the quantity of labor demanded by employer while a lower salary or wage leads to an increase in the quantity of labor demanded.

  134. Anamala ogechukwu Ruth:reg no 2021/242160 says:

    Name:Anamala ogechukwu Ruth
    Reg:2021/242160
    Email: ogechukwuanamala@gmail.com
    Department: palg student

    (1) Utility theory in economics pertain to the value or worth of a certain good service or item ,it suggests that goods service and the 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 with regard to the different values of things with respect to theory,the utility of an item tend to be closely correctly to it prices

    (2)1 Cardinal school of thought
    2 Ordinal school of thought
    Cardinal utility :is a quantitative approach to measuring it present the utility of something as a fixed number ..it is an exact measure of utility .
    An individual can ranked goods and services according to their cardinal utility by comparing the utility numbers derived from the goods or services… examples bunch of 20 bananas can be said to have a cardinal utility of 20 where as 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 customer might assign value to goods or service according to ordinal utility
    Eg .. a man ask his friend which one of the two local barber shop is better ,his friend tell him barber B is better because his skills are more refined

    (3)
    Factors of production labour
    Labour actually means any type of physical or mental exertion .
    In economic term , labour is the effort exerted to produce any goods or services,it include all types of human efforts physical exertion , mental exercise,use of intellect ,etc
    Done in exchange for an economic reward
    Labour productivity is defined as output worker or per hour worked .factors that can affect labour productivity include workers skills , technology change, management practices and changes in other input (such as capital) mutifactor productivity (MFP) is defined as output per unit of combined input . combined input typically include labour and capital,but can be expand to include energy, material and services

    Labour market factors drive the supply and demand for labor..those seeking employment will supply their labour in exchange for wages … Business demand labour from workers will pay for their time and skills

  135. madu chinemerem divine says:

    Name : madu chinemerem divine
    Reg number: 2021/241166
    Dept: public administration and local government

    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 preference
    utility is the amount of benefits one gets from the consumption of particular commodity at a particular time and season

    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 Utility
    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.

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

    understand the two terms “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 refers the entrepreneur pays for availing these factors of production…how does it affect the labour Market??The labour Market is where workers,that is labour and it’s employee (the entrepreneur ) interact with each other…. what happens in the labour Market eg buying and selling and you can also discuss on the effect of low compensation from the entrepreneur on labour,u talk about the activities that happens in the labour market e.g labour market factors derived the supply and demand for labor..those seeking employment will supply their labour in exchange of wages etc

  136. EZE OTUOMASIRICHUKWU PROMISE 2021/242464. NURSING SCIENCE says:

    1: Briefly discuss the elementary theory of utility
    Answer:
    Utility is the amount of satisfaction derived from the use of a commodity at a particular time. Utility can be said to be a mental state the refers to the amount of satisfaction the consumer estimate to have,after the consumption of a certain good or commodity in a particular time .The utility of any product ,relates to something at a particular time.

    2: Mention and discuss Views of utility according to the two schools of thoughts .which you have been thought
    Answer:
    THE CARDINAL SCHOOL OF THOUGHT
    The cardinal 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.
    Assumptions of cardinal approach:
    1:Total Utility (TU) depends on the quantity of goods and services
    2: Money income of the consumer is held constant
    3:There is diminishing marginal utility (MU)
    4: The consumer is rational
    5: Utility is measurable
    THE ORDINAL SCHOOL OF THOUGHT
    The original 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 (a curve that indicates the level of satisfaction attained by a consumer from the Consumption of two commodities). A combination of indifference curve is known as an indifference map.

    3: Explain the demand for and pricing of productive factors emphasizing on the Labour market
    Answer:
    The productive factors are governed by the forces of demand and supply. Labour like other goods in the economy is governed by demand and supply. The demand and supply for Labour determine the wage or price paid for Labour services .The demand curve reflects the value of marginal product of Labour, Therefore in equilibrium ,workers receives the value of their marginal contribution to the production of goods and services.

  137. madu chinemerem divine says:

    Name:madu chinemerem divine
    Dept: public administration and local government
    Reg number:2021/241166

    Briefly discuss the 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 preference
    utility is the amount of benefits one gets from the consumption of particular commodity at a particular time and season

    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 Utility
    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.

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

    two terms “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 refers the entrepreneur pays for availing these factors of production…how does it affect the labour Market??The labour Market is where workers,that is labour and it’s employee (the entrepreneur ) interact with each other…. what happens in the labour Market eg buying and selling and you can also discuss on the effect of low compensation from the entrepreneur on labour,u talk about the activities that happens in the labour market e.g labour market factors derived the supply and demand for labor..those seeking employment will supply their labour in exchange of wages etc…

  138. Osim Philip Bassey says:

    NAME: OSIM PHILIP BASSEY
    REG. NUMBER: 2021/241942

    1) Briefly discuss the elementary theory of utility
    DEFINITION OF UTILITY
    Utility is the amount of satisfaction that you will get from the consumption of a product or service. 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.
    Utility therefore, is relative to a consumer, depending on the time, place, form, etc.
    When Marie makes her weekly trip to the grocery store, she’ll be making many quick decisions about what she buys. She probably has a number in her head that is the most she wants to spend on this trip. That means her objective will be to get the most happiness or satisfaction from every dollar she is going to spend.
    We all know that the concept of happiness is impossible to quantify or put into numerical terms, but economists will try anyway.
    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 the 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.
    THEORY OF UTILITY
    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 measure
    BASIC ASSUMPTIONS OF UTILITY THEORY
    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:
    1. Ranking Options – An individual can rank any number of options based on their utility and the amount of satisfaction they’ll gain from each
    2. 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
    3. 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
    4. Rational Consumers – It is generally assumed that individuals are rational decision makers who’ll always make the best choice in light of utility
    TYPES OF UTILITY
    There are also different types of utility, such as:
    1. Form Utility – Worth of the good or service 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 consumers at the right time
    3. Place Utility – Refers to offering a good or service in the right place for consumers’ easy accessibility
    4. Possession Utility – The satisfaction a consumer gains from owning a certain product/good.

    2) VIEWS OF UTILITY ACCORDING TO THE TWO SCHOOL 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 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

    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. Consumers’ utility increases as the quantity consumed increases but not at equal rate because consumer has a saturation point in the consumption of particular commodity at a given time.
    AVERAGE UTILITY: This derived by dividing total utility by the units of the commodity consumed. That is, it 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 the total utility as a result of the consumption of additional unit of a commodity. MU = ∆TU/∆Q
    THE LAW OF DIMINISHING MARGINAL UTILITY
    The law of diminishing marginal utility states that, other things being equal, the marginal utility of 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 decrease in satisfaction may set in as more and more bottles of beer are consumed until he may be unable to consume anymore.
    UTILITY MAXIMIZATION
    Utility maximization is also known as equilibrium of the consumer. A point where a consumer derives maximum satisfaction when his marginal utility equates the price of the commodity consumed. That is, the additional utility derived from the consumption of additional commodity is equal to price of the commodity.
    In the case of one commodity, a consumer will maximize his satisfaction in the consumption of a particular commodity when the MU of that commodity equals the price of that commodity, eg MUx = Px
    In the case of two or more commodities, a consumer is said to be in equilibrium or maximizes his utility when the ratio of MU of the last unit of the commodities consumed should be equal to the ratio of the price. Alternatively, a consumer’s utility is maximized when the MU per amount spent on a product is equal to the MU per amount spent on any other product,
    ORDINAL SCHOOL OF THOUGHT
    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.
    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.
    Assumptions of Ordinal Utility Approach
    1) Rationality: It is assumed that the consumer is rational who aims at maximizing his level of satisfaction for given income and prices of goods and services, which he wish to consume. He is expected to take decisions consistent with this objective.
    2) Ordinal Utility: The indifference curve assumes that the utility can only be expressed ordinally. This means the consumer can only tell his order of preference for the given goods and services.
    3) Transitivity and Consistency of Choice: The consumer’s choice is expected to be either transitive or consistent. The transitivity of choice means, if the consumer prefers commodity X to Y and Y to Z, then he must prefer commodity X to Z. In other words, if X= Y, Y = Z, then he must treat X=Z. The consistency of choice means that if a consumer prefers commodity X to Y at one point of time, he will not prefer commodity Y to X in another period or even will not consider them as equal.
    4) Nonsatiety: It is assumed that the consumer has not reached the saturation point of any commodity and hence, he prefers larger quantities of all commodities.
    5) Diminishing Marginal Rate of Substitution (MRS): The marginal rate of substitution refers to the rate at which the consumer is ready to substitute one commodity (A) for another commodity (B) in such a way that his total satisfaction remains unchanged. The MRS is denoted as DB/DA. The ordinal approach assumes that DB/DA goes on diminishing if the consumer continues to substitute A for B.
    3) 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.
    3b) Pricing of productive factors on labour market
    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.
    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.”
    There are two aspects of each factor of production, which are as follows:
    i. Price Aspect:
    Refers to the aspect in which an organization pays a certain amount to avail the services of factors of production. For example, wages, rents, and interests constitute the price of factors of production.
    ii. Income Aspect:
    Refers to another aspect in which a certain amount is received by a factor of production. For instance, rents received by a landlord and wages received by labor constitute the income generated from the factors of production.
    Generally, it is assumed that factor pricing theory is similar to product pricing theory. However, there are certain differences between the two theories. Both the theories assume the determination of prices by the interaction of two market forces, namely demand and supply.
    However, there are differences in the nature of demand and supply of factors of production with respect to that of products. The demand for factors of production is derived demand, while demand for products is direct demand. Moreover, the demand for the factors of production is joint demand.
    This is because a product cannot be produced using a single factor of production. On the other hand, the supply of products is closely related with the cost of production, whereas there is no cost of production for factors. For example, there is no cost of production for land, labor, and capital. Therefore, the factor pricing is separated from product pricing.

  139. Ibiam Nkemdilim Clara says:

    Name:Ibiam Nkemdilim Clara
    Matric number:2021/241336

    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

  140. Ibiam Nkemdilim Clara says:

    Name: Ibiam Nkemdilim Clara
    Matric number:2021/241336

    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

  141. Ireoba Gideon Chikamjieke says:

    Name: Ireoba Gideon Chikamjieke
    Department: Economics
    Matriculation Number: 2021/244132

    1. CI(X) (F) M.P CF RF CRF
    17-18 6 17.5 6 0.18 0.18
    19-20 5 19.5 11 0.15 0.33
    21-22 8 21.5 19 0.24 0.57
    23-24 7 23.5 26 0.21 0.78
    25-26 4 25.5 30 0.12 0.9
    27-28 3 27.5 33 0.09 0.99

    2(a). Sample: A sample is a smaller set of data that a researcher chooses or selects from a larger population using a pre-defined selection method. These elements are known as sample points, sampling units, or observations.

    (b). Population: Population is the number of statistical units sharing at least one common property which is of interest in a statistical analysis. Population is used to describe the subjects of a particular study everything or everyone who is the subject of a statistical observation.

    (c). Continuous Variable: A continuous variable is defined as a variable which can take an uncountable set of values or infinite set of values. For instance, if a variable over a non-empty range of the real numbers is continuous, then it can take on any value in that range.

    (d). Discrete Variable: Discrete variables can only assume specific values that you cannot subdivide. Typically, you count them, and the results are integers. For example, if you work at an animal shelter, you’ll count the number of cats. A discrete variable is a kind of statistics variable that can only take on discrete specific values.

    (e). Statistics: Statistics is a branch that deals with every aspect of the data. Statistical knowledge helps to choose the proper method of collecting the data and employ those samples in the correct analysis process in order to effectively produce the results. In short, statistics is a crucial process which helps to make the decision based on the data.

    (b). Data: Data can be defined as a systematic record of a particular quantity. It is the different values of that quantity represented together in a set. It is a collection of facts and figures to be used for a specific purpose such as a survey or analysis. When arranged in an organized form, can be called information. The source of data ( primary data, secondary data) is also an important factor.

  142. Ekeh loveth chidiogo. Reg num 11130267jb. Department: Public administration and local governments factually: social sciences. Cos code: eco 101 level: 100l says:

    Theory of utility is an economic that postulate the fact that consumers make purchase decision based in the degree of utility or satisfaction they obtain from or given to them. This means that the higher items will be prioritised in the consumer budget. utility theory also tries to explain the behaviour of an individual in an economy.
    TYPES OF THEORY UTILITY
    (1)time utility
    (2) marginal utility
    TIME UTILITY: this type of utility occurs when a company provides goods and services when a consumer demands or needs them
    MARGINAL UTILITY: is the added satisfaction that a consumer gets from having one more unit of goods or services
    (2) utility is the capacity of a commodity to satisfy human wants. thus it is said that want satisfying capacity of goods and services is called utility , in this ways utility is measured in terms of money and it is relative. The different between utility and usefulness is that a useful commodity may not here uniting of goods depends upon the intensity of wants
    (3)demand simply means a consumer’s desire to buy goods and services without any hesitation and pay the price of it in simple words. As market demand increases, so does the price , when the demand decreases , price will go down as well
    Pricing of productive factors/price factors: factor pricing is associated with the price that are entrepreneur pays to avoid the services rendered by the factors of production for example an entrepreneur needs to pay wages to labour, rent for availing land and interest for capital so that he/she can earn maximum profit

  143. Ezenduka Sochima Adriano 2021/241333 says:

    Matric No; 2021/241333.
    1. Utility can be defined as the ability of goods and services to satisfy unlimited human wants.It can also be seen as satisfaction an individual desire from consumption of goods and services. The concept of utility is used to express consumer’s tastes and preferences.The four types of utility are: time utility, form utility, place utility, possession utility. Time utility is the satisfaction derived by a consumer from goods and services at a particular time.
    Form utility is the transformation of goods from one form to another for the goods to confer satisfaction when consumed.
    Place utility can be obtained through the process of making goods or services more easily available to consumers.
    Possession utility refers to the satisfaction derived from the ownership of goods and services. The concept of utility are also analysed by two school of thoughts.

    2. Under the cardinal school of thought we have the assumption of cardinal approach which are :
    Total utility (TU): which depend on the quantity of goods and services.
    Money income of the consumer is constant
    There is also diminishing marginal utility.
    The consumer is rational, and utility is measurable… All these assumptions are derived from the concept of TU,AU, and MU.
    Under the concept of TU, T.U is the Total amount of satisfaction a consumer from the production of a particular commodity at a particular time.
    Formula for TU is average utility × quantity consumed. We also have the average utility, marginal utility, law of diminishing marginal utility and utility maximization e.t.c
    Then we also have the ordinal school of thought.
    The ordinal approach requires that consumer make a scale of preference,by choosing 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. Demand for labour for example is not demand for labour himself but infact, demand for goods and services which the labour produces. The demand for labour depends on the size and composition of population,it’s geographical distribution, efficiency, expected income e.t.c and it’s defined as the amount a labour that employers seek to hire during a given time at a particular wage rate. The demand for labour is seen as DD which is derived demand in that, labour is demanded not for its own sake but for contribution. AND;
    Pricing of labour is that factor pricing is associated with the prices that an entrepreneur pays to avail the services rendered by factors of production, for the labour market an entrepreneur needs to pay wages so that he can earn maximum profit.

  144. Obute Adaora Rachael. Reg no: 2021/242476 says:

    Utility Theory

    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.

    The utility is a psychological phenomenon; that implies the satisfying power of a good or service. It differs from person to person, as it depends on a person’s mental attitude. The measurability of utility is always a matter of contention.

    Different views of utility according to the schools of thoughts are

    *Cardinal utility and
    *Ordinal utility.

    Definition of 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.

    Definition of 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.

    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.

    3)The demand for and pricing of the productive factors on the labour market

    The labour demand curve shows an inverse relationship between the employment level and the wage rate.
    The factors that affect the labour demand curves are
    * Labor productivity
    * Changes in technology
    * Changes in the number of firms
    * Firm profitability, etc

    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.
    This is because it would cost less for a firm to hire more workers to produce its output. Thus, the firm would hire more, thereby increasing employment.

    Conversely, if the wage rate increases, employment levels would fall. This is because it would cost more for a firm to hire new workers to produce its output. Thus, the firm would hire less, thereby decreasing employment.

    When wages are lower, labour becomes relatively cheaper than capital. We can say that when the wage rate starts decreasing, a substitution effect might occur (from capital to more labour) that would lead to more labour being employed.

  145. UDEZE Mmesoma Marycynthia says:

    Name: Udeze Mmesoma Marycynthia
    REG. no: 2019/247504
    course: Economics
    course code: Eco 101
    Answer
    1. 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 measure quantitative.

    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.

    2b.ORDINAL SCHOOL OF THOUGHT: 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

    3. The demand for and pricing of productive factors: 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.

  146. Ukwueze Ginikachukwu Glory. 2021/245864 says:

    NAME: UKWUEZE GINIKACHUKWU GLORY

    REG NO: 2021/245864

    FACULTY: SOCIAL SCIENCES

    DEPARTMENT: PUBLIC ADMINISTRATION AND LOCAL GOVERNMENT(PALG)

    1. Elementary 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. 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. Hence, it is the utmost satisfaction a consumer derives from a commodity.

    2. The two schools of thought are;
    i. Cardinal school of thought and
    ii. 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 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
    ORDINAL SCHOOL OF THOUGHT: 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.

    3. The four factors of production are land, physical capital, human capital, and entrepreneurship. The reward for land is rent, for capital is interest, for labor or human capital is wages, and for entrepreneurship is profit.
    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.
    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.

  147. Ukwueze Ginikachukwu Glory. says:

    NAME: UKWUEZE GINIKACHUKWU GLORY

    REG NO: 2021/245864

    FACULTY: SOCIAL SCIENCES

    DEPARTMENT: PUBLIC ADMINISTRATION AND LOCAL GOVERNMENT(PALG)

    1. Elementary 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. 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. Hence, it is the utmost satisfaction a consumer derives from a commodity.

    2. The two schools of thought are;
    i. Cardinal school of thought and
    ii. 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 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
    ORDINAL SCHOOL OF THOUGHT: 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.

    3. The four factors of production are land, physical capital, human capital, and entrepreneurship. The reward for land is rent, for capital is interest, for labor or human capital is wages, and for entrepreneurship is profit.
    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.
    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.

  148. Ikechi Chinwendu faith says:

    Name: Ikechi Chinwendu faith
    Reg no: 2021/241162
    Dept: Public administration and local government
    Faculty : Social Sciences
    Level: 100lvl
    Assignment on Eco 101

    1. Briefly discuss the elementary theory of
    utility:
    Answer:

    The elementary theory of utility is a theory that explains how consumers make choices among different goods and services based on the satisfaction or pleasure they derive from consuming them. According to this theory, consumers seek to maximize their total satisfaction or utility, subject to their budget constraints.

    The theory assumes that consumers have a set of preferences for different goods and services, and that they can rank these preferences in terms of their satisfaction or utility. In other words, consumers can assign a value or utility to each good or service that they consume, and they can compare the value or utility of one good or service to another.

    The theory also assumes that consumers have a limited budget or income, which they can use to purchase different goods and services. The budget constraint implies that consumers must make choices and trade-offs among different goods and services, since they cannot afford to buy everything they desire.

    Finally, the theory assumes that consumers make rational choices based on their preferences and budget constraints. Rational choices mean that consumers choose the combination of goods and services that maximizes their total utility, given their budget constraint.

    Overall, the elementary theory of utility provides a framework for understanding how consumers make choices among different goods and services based on their preferences and budget constraints. It is an important foundation for many models of consumer behavior in economics and marketing.

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

    There are two main schools of thought regarding the concept of utility in economics: the classical school and the neoclassical school. Each school has a different view of the nature and measurement of utility, as follows:

    Classical school of thought:
    The classical economists viewed utility as an objective and measurable property of goods and services. They believed that the value or utility of a good or service is determined by the amount of labor that went into its production. According to this view, the more labor that goes into producing a good or service, the greater its value or utility.
    The classical economists also believed in the concept of diminishing marginal utility, which means that as a consumer consumes more of a particular good or service, the additional utility or satisfaction that he or she derives from each additional unit consumed diminishes. In other words, the first unit of a good or service consumed provides the most utility, and each subsequent unit provides less and less utility.

    Neoclassical school of thought:
    The neoclassical economists rejected the classical view of utility as an objective and measurable property of goods and services. They viewed utility as a subjective and personal experience that cannot be directly observed or measured. According to this view, consumers’ preferences and choices are based on their individual tastes, desires, and needs.
    The neoclassical economists developed the concept of utility as a measure of consumer satisfaction or happiness. They believed that consumers make choices based on the expected level of satisfaction or utility that they will derive from consuming different goods and services. The neoclassical economists also developed the concept of total utility and marginal utility, which are used to measure the satisfaction or utility that a consumer derives from consuming a particular good or service.

    Overall, the classical school of thought viewed utility as an objective and measurable property of goods and services, while the neoclassical school viewed utility as a subjective and personal experience that cannot be directly observed or measured. Both views have influenced the development of economic theory and models of consumer behavior.

    3. Explain the demand for and pricing of productive factors emphasizing on the labor market.
    Answers:

    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 derived from the demand for the goods and services that labor produces. The pricing of labor is determined by the interaction of the supply of and demand for labor.

    Demand for labor:
    The demand for labor is derived from the demand for the goods and services that labor produces. As the demand for goods and services increases, firms require more labor to produce those goods and services. The demand for labor is also affected by the productivity of labor, which refers to the amount of output that a given amount of labor can produce. Firms are willing to pay higher wages for more productive workers, as they can produce more output per hour of work.

    Pricing of labor:
    The pricing of labor is determined by the interaction of the supply of and demand for labor. The supply of labor is determined by the number of people who are willing and able to work at a given wage rate. The demand for labor, as mentioned earlier, is derived from the demand for the goods and services that labor produces.

    When the supply of labor exceeds the demand for labor, there is a surplus of labor, which puts downward pressure on wages. Conversely, when the demand for labor exceeds the supply of labor, there is a shortage of labor, which puts upward pressure on wages. The market wage rate is the wage rate at which the quantity of labor demanded equals the quantity of labor supplied.

    Factors affecting labor demand and pricing:
    Several factors can affect the demand for and pricing of labor. These include changes in technology, which can increase or decrease the productivity of labor; changes in the demand for goods and services; changes in the supply of labor, which can be affected by demographic factors such as population growth and changes in immigration policies; and changes in government policies, such as minimum wage laws, labor regulations, and tax policies.

    Overall, the demand for and pricing of labor is determined by the interaction of supply and demand in the labor market. Firms demand labor based on the productivity of labor and the demand for goods and services. The pricing of labor is determined by the interaction of the supply of and demand for labor, and is influenced by a variety of factors, including changes in technology, demographics, and government policies.

  149. Ukwueze Ginikachukwu Glory says:

    NAME: UKWUEZE GINIKACHUKWU GLORY

    REG NO: 2021/245864

    FACULTY: SOCIAL SCIENCES

    DEPARTMENT: PUBLIC ADMINISTRATION AND LOCAL GOVERNMENT(PALG)

    1. Elementary 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. 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. Hence, it is the utmost satisfaction a consumer derives from a commodity.

    2. The two schools of thought are;
    i. Cardinal school of thought and
    ii. 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 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
    ORDINAL SCHOOL OF THOUGHT: 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.

    3. The four factors of production are land, physical capital, human capital, and entrepreneurship. The reward for land is rent, for capital is interest, for labor or human capital is wages, and for entrepreneurship is profit.
    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.
    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.

  150. Ukwueze Ginikachukwu Glory says:

    NAME: UKWUEZE GINIKACHUKWU GLORY

    REG NO: 2021/245864

    FACULTY: SOCIAL SCIENCES

    DEPARTMENT: PUBLIC ADMINISTRATION AND LOCAL GOVERNMENT(PALG)

    1. Elementary 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. 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. Hence, it is the utmost satisfaction a consumer derives from a commodity.

    2. The two schools of thought are;
    i. Cardinal school of thought and
    ii. 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 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
    ORDINAL SCHOOL OF THOUGHT: 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.

    3. The four factors of production are land, physical capital, human capital, and entrepreneurship. The reward for land is rent, for capital is interest, for labor or human capital is wages, and for entrepreneurship is profit.
    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.
    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.

  151. Ukwueze Ginikachukwu Glory says:

    NAME: UKWUEZE GINIKACHUKWU GLORY

    REG NO: 2021/245864

    FACULTY: SOCIAL SCIENCES

    DEPARTMENT: PUBLIC ADMINISTRATION AND LOCAL GOVERNMENT(PALG)

    1. Elementary 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. 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. Hence, it is the utmost satisfaction a consumer derives from a commodity.

    2. The two schools of thought are;
    i. Cardinal school of thought and
    ii. 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 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
    ORDINAL SCHOOL OF THOUGHT: 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.

    3. The four factors of production are land, physical capital, human capital, and entrepreneurship. The reward for land is rent, for capital is interest, for labor or human capital is wages, and for entrepreneurship is profit.
    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.
    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.

  152. Ukwueze Ginikachukwu Glory says:

    NAME: UKWUEZE GINIKACHUKWU GLORY

    REG NO: 2021/245864

    FACULTY: SOCIAL SCIENCES

    DEPARTMENT: PUBLIC ADMINISTRATION AND LOCAL GOVERNMENT(PALG)

    1. Elementary 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. 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. Hence, it is the utmost satisfaction a consumer derives from a commodity.

    2. The two schools of thought are;
    i. Cardinal school of thought and
    ii. 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 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
    ORDINAL SCHOOL OF THOUGHT: 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.

    3. The four factors of production are land, physical capital, human capital, and entrepreneurship. The reward for land is rent, for capital is interest, for labor or human capital is wages, and for entrepreneurship is profit.
    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.
    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.

  153. Ada says:

    Name: Ejeh Adaeze
    Reg N.o: 2019/250269
    Email: adaezeejeh017@gmail.com
    Blog Address: Ada’s blog

  154. Ada says:

    Name: Ejeh Adaeze
    Reg N.o: 2019/250269
    Email: adaezeejeh017@gmail.com
    Blog Address: https://adaezeejeh.blogspot.com/

  155. Ugoh Jacinta Nzubechi department: Economics reg no:10811405GD says:

    Name: Ugoh Jacinta Nzubechi
    Department: Economics
    Reg no:10811405GD
    Email: Jacintaugoh3@gmail.com

    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
    a. 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. 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.

  156. OKOLIE EMMANUEL AMAOBICHUKWU. REG NO:2021/244147. DEPT: PUBLIC ADMINISTRATION AND LOCAL GOVERNMENT. says:

    1. Utility means the ability of goods and services to satisfy unlimited human wants. it can also be defined as the satisfaction,pleasure or fulfilment an individual derives from the Consumption of goods and services. Goods are described because of their ability to satisfy human wants. 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 determining how a consumer maximizes satisfaction in spending income. Thus, when a consumer derives satisfaction from consuming goods or services,it can be said that the goods or services consumed or utilised possess Utility, which is relative to the consumer depending on time,place,form and possession.

    2a.The Cardinal school of thought
    b. The Ordinal school of thought.
    2a. The Cardinal school of thought; This school of thought emphasises 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. There are five assumptions of the Cardinal school of thought
    1.Total Utility(TU) depends on the quantity of goods or services.
    2.Money income of the consumer is held constant
    3.There is diminishing marginal Utility (MU)
    4.The Consumer is Rational
    5. Utility is measurable
    Note: There assumptions are derived from the concepts of total Utility, average utility and marginal utility.
    Concept of Total Utility; total Utility is the total amount of satisfaction a consumer derives from the consumption of a particular commodity at a point in time.
    Concept of Average Utility; This is the amount of satisfaction a consumer derives from the consumption of a unit of a commodity. it is derived by dividing the total amount of Utility,derived by the total number of commodities consumed by the customer.
    Concept of Marginal Utility; This is the additional satisfaction a consumer a consumer derives from the consumption of an additional unit of a particular commodity,at a particular point in time. it is the change in the total Utility as a result of the consumption of additional unit of a commodity.

    2b.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( a curve that indicates the levels of satisfaction attained by a consumer from the consumption of two commodities). A Combination of indifference curves is known as an indifference map.

    3. The Demand for a factor is not a direct demand but an indirect or derived demand. The demand for labour for example,is not demand for labour himself but infact, demand for goods and services which the labour produces. Thus, in labour market, it means where wages and salaries of labourers are Negotiated. The forces of demand and supply determines the wages and salaries a labourer will be paid. in the senes that when the demand of that labour is so high, then the wages or salaries of a labourer will also increase(the wages there means the price) Demand for labour is a derived demand. this basically means that the forces of demand and supply plays a role in the labour market, where human beings are used in order to carry out production, so this also means that when the demand for labour is low compared to “supply”, the wages or salaries(prize) will also decrease.

  157. NAME _OFOMA CHIZARAM CELESTINA REG NO_ 10695470CG DEPARTMENT OF PUBLIC ADMINISTRATION AND LOCAL GOVERNMENT FACULTY OF SOCIAL SCIENCE says:

    Elementary theory of utility is based on the fact that satisfaction which consumers derived from consumption of goods and services can be measure quantitative. if tries to explain the behavior of individual consumers in an economy. it is a theory postulated in economics to explain the behavior of individual based on the premise people can consistently rank order their choices depending on their preference. Each person has different choices which are set, not changing overtime.
    CARDINAL SCHOOL OF THOUGHT _ This approach empathize 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. It assumes that marginal utilty decreases or diminishes with extra unit of consumption known as law of diminishing marginal utility. It is an idea that economic welfare can be directly observable and be given a value.
    ORDINAL SCHOOL OF THOUGHT_ It states that the utility or satisfaction 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 it cannot be expressed in cardinal number. Utility cannot be measured in cardinal numbers in ordinal utility theory. ordinality means that utility can be ranked.

    Labour market is a market where wages and salaries are negotiated. when producing goods and services, businesses require labour and capital as inputs to their productive process. The demand for labour is an economic principle derived from the demand and for a firm’s output. That’s is, if demand for a firm’s output increases, the firm will demand for more labour, this hiring more staff. And if demand for the firm’s output of goods and services decreases, it will then require less labour and its demand will fall.
    Those seeking employment will supply their labour in exchange for wages. Businesses demanding labour from workers will pay for their time and skills. The demand for labour is a derived demand that’s demand for something you want to produce and you need labourers who will produce it and that’s why it’s called productive factors. Human being is a productive factors and human being is needed for the production of goods and services.

  158. NAME _OFOMA CHIZARAM CELESTINA REG NO_ 10695470CG DEPARTMENT OF PUBLIC ADMINISTRATION AND LOCAL GOVERNMENT FACULTY OF SOCIAL SCIENCE says:

    Elementary theory of utility is based on the fact that satisfaction which consumers derived from consumption of goods and services can be measure quantitative. it is a theory postulated in economics to explain the behavior of individual based on the premise people can consistently rank order their choices depending on their preference. Each person has different choices which are set, not changing overtime.
    CARDINAL SCHOOL OF THOUGHT _ This approach empathize 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. It assumes that marginal utilty decreases or diminishes with extra unit of consumption known as law of diminishing marginal utility. It is an idea that economic welfare can be directly observable and be given a value.
    ORDINAL SCHOOL OF THOUGHT_ It states that the utility or satisfaction 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 it cannot be expressed in cardinal number. Utility cannot be measured in cardinal numbers in ordinal utility theory. ordinality means that utility can be ranked.

    Labour market is a market where wages and salaries are negotiated. when producing goods and services, businesses require labour and capital as inputs to their productive process. The demand for labour is an economic principle derived from the demand and for a firm’s output. That’s is, if demand for a firm’s output increases, the firm will demand for more labour, this hiring more staff. And if demand for the firm’s output of goods and services decreases, it will then require less labour and its demand will fall.
    Those seeking employment will supply their labour in exchange for wages. Businesses demanding labour from workers will pay for their time and skills. The demand for labour is a derived demand that’s demand for something you want to produce and you need labourers who will produce it and that’s why it’s called productive factors. Human being is a productive factors and human being is needed for the production of goods and services.

  159. NAME _OFOMA CHIZARAM CELESTINA REG NO_ 10695470CG DEPARTMENT OF PUBLIC ADMINISTRATION AND LOCAL GOVERNMENT FACULTY OF SOCIAL SCIENCE says:

    Elementary theory of utility is based on the fact that satisfaction which consumers derived from consumption of goods and services can be measure quantitative. it is a theory postulated in economics to explain the behavior of individual based on the premise people can consistently rank order their choices depending on their preference. Each person has different choices which are set, not changing overtime.
    CARDINAL SCHOOL OF THOUGHT _ This approach empathize 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. It assumes that marginal utilty decreases or diminishes with extra unit of consumption. It is an idea that economic welfare can be directly observable and be given a value.
    ORDINAL SCHOOL OF THOUGHT_ It states that the utility or satisfaction 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 it cannot be expressed in cardinal number. Utility cannot be measured in cardinal numbers in ordinal utility theory. ordinality means that utility can be ranked.

    Labour market is a market where wages and salaries are negotiated. when producing goods and services, businesses require labour and capital as inputs to their productive process. The demand for labour is an economic principle derived from the demand and for a firm’s output. That’s is, if demand for a firm’s output increases, the firm will demand for more labour, this hiring more staff. And if demand for the firm’s output of goods and services decreases, it will then require less labour and its demand will fall.
    Those seeking employment will supply their labour in exchange for wages. Businesses demanding labour from workers will pay for their time and skills. The demand for labour is a derived demand that’s demand for something you want to produce and you need labourers who will produce it and that’s why it’s called productive factors. Human being is a productive factors and human being is needed for the production of goods and services.

  160. NAME _OFOMA CHIZARAM CELESTINA REG NO_ 10695470CG DEPARTMENT OF PUBLIC ADMINISTRATION AND LOCAL GOVERNMENT FACULTY OF SOCIAL SCIENCE says:

    Elementary theory of utility is based on the fact that satisfaction which consumers derived from consumption of goods and services can be measure quantitative. it is a theory postulated in economics to explain the behavior of individual based on the premise people can consistently rank order their choices depending on their preference. Each person has different choices which are set, not changing overtime.
    CARDINAL SCHOOL OF THOUGHT _ This approach empathize 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. It assumes that marginal utilty decreases or diminishes with extra unit of consumption. It is an idea that economic welfare can be directly observable and be given a value.
    ORDINAL SCHOOL OF THOUGHT_ It states that the utility or satisfaction 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 it cannot be expressed in cardinal number. ordinality means that utility can be ranked.

    Labour market is a market where wages and salaries are negotiated. when producing goods and services, businesses require labour and capital as inputs to their productive process. The demand for labour is an economic principle derived from the demand and for a firm’s output. That’s is, if demand for a firm’s output increases, the firm will demand for more labour, this hiring more staff. And if demand for the firm’s output of goods and services decreases, it will then require less labour and its demand will fall.
    Those seeking employment will supply their labour in exchange for wages. Businesses demanding labour from workers will pay for their time and skills. The demand for labour is a derived demand that’s demand for something you want to produce and you need labourers who will produce it and that’s why it’s called productive factors. Human being is a productive factors and human being is needed for the production of goods and services.

  161. NAME _OFOMA CHIZARAM CELESTINA REG NO_ 10695470CG DEPARTMENT OF PUBLIC ADMINISTRATION AND LOCAL GOVERNMENT FACULTY OF SOCIAL SCIENCE says:

    Elementary theory of utility which is based on the fact that satisfaction which consumers derived from consumption of goods and services can be measure quantitative. it is also atheory postulated in economics to explain the behavior of individual based on the premise people can consistently rank order their choices depending on their preference. Each person has different choices which are set, not changing overtime.

    CARDINAL SCHOOL OF THOUGHT _ This approach empathize 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. It assumes that marginal utilty decreases or diminishes with extra unit of consumption. It is an idea that economic welfare can be directly observable and be given a value.
    ORDINAL SCHOOL OF THOUGHT_ It states that the utility or cannot be measured in exact numbers but can only be put into order. This approach argues that utility is completely a psychological element and it cannot be expressed in cardinal number. ordinality means that utility can be ranked.

    Labour market is a market where wages and salaries are negotiated. when producing goods and services, businesses require labour and capital as inputs to their productive process. The demand for labour is an economic principle derived from the demand and for a firm’s output. That’s , if demand for a firm’s output increases, the firm will demand for more labour. And if demand for the firm’s output of goods and services decreases, it will require less labour and its demand will fall.
    Those seeking employment will supply their labour in exchange for wages. Businesses demanding labour from workers will pay for their time and skills. The demand for labour is a derived demand that’s demand for something you want to produce and you need labourers who will produce it and that’s why it’s called productive factors. Human being is a productive factors and human being is needed for the production of goods and services.

  162. EZEUKO DESTINY IFUNANYA 2020/246831 says:

    1)

  163. OKOCHA FELICITA IFECHUKWUDE. Reg. No.: 2021/241945 says:

    1.) The elementary theory of utility is a fundamental concept in economics that describes how individuals make choices based on the satisfaction, or utility, they derive from consuming goods and services.
    According to this theory, individuals aim to maximize their utility by allocating their limited resources, such as money or time, in the most efficient way possible. They make choices by weighing the benefits and costs of each option, and they will choose the option that gives them the highest level of utility.
    Utility is subjective and varies from person to person, so it is difficult to measure objectively. However, economists use the concept of marginal utility to analyze the behavior of consumers. Marginal utility refers to the additional satisfaction that a person gains from consuming one more unit of a good or service.
    The law of diminishing marginal utility states that as a person consumes more of a good or service, the marginal utility of each additional unit decreases. For example, the first slice of pizza may be very satisfying, but the fifth slice may not be as satisfying. This law helps explain why individuals will eventually stop consuming a good or service when its marginal utility decreases to a certain level.
    The elementary theory of utility is an essential building block for many economic models, including consumer theory and demand theory, and helps explain why individuals make the choices they do.

    2.) The different views utility according to the two school of thoughts:
    Ordinary Utility and Cardinal Utility.

    i.) Ordinary Utility: Ordinary utility is a key concept in the study of consumer behavior, as it helps to explain why people make certain choices about what to buy and how much to consume. By understanding how individuals perceive the value of different goods and services, economists can develop models to predict consumer behavior and make recommendations for policy makers and businesses.
    Ordinary utility also refers to the satisfaction or benefit that an individual derives from consuming a particular good or service. It is often measured in terms of the amount of money that a person is willing to pay for that good or service, and is generally considered to be subjective and dependent on individual preferences.

    ii.) Cardinal Utility: Cardinal utility is a concept in economics that suggests that utility (the level of satisfaction or happiness a person derives from consuming a good or service) can be measured in numerical terms. This means that economists can assign a specific value to the amount of utility a person gains from consuming a particular good or service, such as a cup of coffee or a pair of shoes.
    The concept of cardinal utility was widely used in early economic theory, but it has since been largely replaced by the idea of ordinal utility, which assumes that while individuals can rank their preferences, they cannot assign precise numerical values to the level of satisfaction they derive from each option.
    Ordinal utility theory argues that people can make choices based on their relative preferences, but they cannot measure or compare their level of satisfaction numerically. While the concept of cardinal utility is still debated among economists, most contemporary economic theories and models are based on the idea of ordinal utility.

    3.) The demand for and pricing of productive factors, including labor, are fundamental concepts in economics. Productive factors refer to the resources or inputs used in the production of goods and services, such as land, capital, and labor. In the labor market, the demand for labor is determined by the productivity of labor and the price of the output it produces.
    Employers demand labor because it is necessary to produce goods and services. The demand for labor is a derived demand, meaning that it is based on the demand for the goods and services produced by the labor. If the demand for goods and services increases, the demand for labor also increases. Employers will demand more labor to produce more goods and services to meet the higher demand. On the other hand, if the demand for goods and services decreases, the demand for labor will also decrease.
    The price of labor, or the wage rate, is determined by the intersection of the demand and supply of labor. The supply of labor is the number of workers willing to work at a given wage rate. The higher the wage rate, the more workers will be willing to supply their labor. Conversely, the lower the wage rate, the fewer workers will be willing to supply their labor.
    The pricing of labor is influenced by various factors such as the skills and education of the labor force, the level of competition in the labor market, and government regulations such as minimum wage laws. For example, if there is a shortage of skilled workers in a particular industry, the wage rate for those workers may be higher than in other industries where the supply of skilled workers is more abundant.
    In conclusion, the demand for and pricing of productive factors, particularly labor, are crucial to understanding the functioning of the labor market. The demand for labor is derived from the demand for goods and services, and the wage rate is determined by the intersection of the demand and supply of labor. Various factors influence the pricing of labor, including the level of education and skills of the labor force, competition, and government regulations.

  164. EZEUKO DESTINY IFUNANYA 2020/246831 says:

    A. 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. it was founded by a swiss mathematician named 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.
    1. 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.
    2.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
    1) That a customer can rank any number of given options.
    2) More total utility is always better than less.
    3) A mix of goods is better than a set of one good.
    4)Customers are rational decision makers.
    * 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.

    B.) The two school of thoughts under Utility can be divided into two
    1. Cardinal Utility
    2. Ordinal Utility
    CARDINAL 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.
    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.

    C.) 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 Soda.
    The more an individual consumes, the less the need.

  165. NAME : OSSAI, SOROMTOCHUKWU SYLVIA. says:

    NAME : OSSAI, SOROMTOCHUKWU SYLVIA
    DEPARTMENT : NURSING SCIENCES
    REG NUMBER : 2021/242481

    1 – ELEMENTARY THEORY OF UTILITY
    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 the 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? As we said earlier, this is premised on the assumption that consumption can be measured.
    Total Utility
    This is the total amount of satisfaction a consumer derives from the consumption of several quantities of a commodity.
    Marginal Utility
    The additional satisfaction or benefit (utility) that a consumer derives from buying an additional unit of a commodity or service. The concept implies that the utility or benefit to a consumer of an additional unit of a product is inversely related to the number of units of that product he already owns.

    2 – VIEWS OF UTILITY ACCORDING TO THE TWO SCHOOLS OF THOUGHT
    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.

    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.

    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 – THE DEMAND FOR AND PRICING OF PRODUCTIVE FACTORS ESPECIALLY THE LABOR 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.

    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.

    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.

  166. Enum Edwin chigozie says:

    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.

    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. It also starts that utility can be ranked

    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. 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.

    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.

  167. Uliaga miracle ebubechukwu...2020/245161...pure and industrial chemistry says:

    Answer no1
    Utility theory is based on the fact that satisfaction which consumer derived from consumption of goods and services can be measured quantitative

    Answer no2
    1:Economic utility can be defined as the total amount of satisfaction that someone experiences when they consume a particular product or service. It helps measure how much fulfillment someone requires in order to satisfy a particular need or want.
    2: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.
    3: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.

    Answer no 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 will shift d labour demand curve outwards.

  168. Akachukwu kosisochukwu John says:

    Name:Akachukwu Kosisochukwu John
    Email:bishopkosiso@gmail.com
    Mat no:2021/244040
    Dept: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
    a. 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. 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.

  169. Anyiam Maryjane Chiamaka says:

    NAME: ANYIAM MARYJANE CHIAMAKA
    REG NO: 2021/243498
    DEPARTMENT: NURSING SCIENCE.

    1. ELEMENTARY THEORY OF UTILITY
    Utility is the ability of goods or services to satisfy human wants. It is the satisfaction or pleasure a consumer derives from the use of a commodity. The concept of utility is used to express a consumer’s taste and preference; however, utility itself is difficult to measure.
    Although utility cannot be measured directly, it can be measured by means of consumer theories, which assume that a consumer will strive to attain maximum utility using his limited resources. When a consumer derives satisfaction from the use of goods or services, the goods or services possess a utility, which is relative to that consumer.
    Utility is classified into four types;
    1. Time Utility: The quicker a product or service can be purchased and used at that time, the higher its perceived utility. Time utility is always high in times of scarcity. For example, the time utility of a bottle of cold water is higher in hot weather than it is in cold weather
    2. Form Utility: The transformation ability of goods and services to suit the needs of a consumer gives it added value. Some goods have no utility until they are transformed into a form that can be utilized by the consumer. An example is flour, which does not give direct satisfaction but must be in form of bread, cake e.t.c for the consumer to derive satisfaction
    3. Place Utility: This is the ability of goods and services to satisfy a need within a location. The more accessible a product or service is within a location, the higher its place utility. A bookshop offers no satisfaction on a construction site but has utility in a school
    4. Possession utility: This is the satisfaction derived from the ownership of goods and services. The more benefits obtained from owning goods and services, the higher its possession utility. A man who owns a car obtains more satisfaction than if he borrows a car

    2. CARDINAL AND ORDINAL SCHOOLS OF THOUGHTS
    A. The Cardinal School of Thought:
    This school of thought emphasizes that utility is measurable i.e that the quantity of goods and services that satisfy a consumer can be measured using numbers 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.

    B. The Ordinal School of Thought:
    The ordinal approach to consumer utility states that utility cannot be measured in exact numbers but can only be ranked. It requires that consumers make a scale of preference by choosing between the various commodities that give the same satisfaction level. This approach makes use of an indifference curve.
    Indifference Curve
    An indifference curve indicates the satisfaction levels obtained from consuming two commodities. A combination of indifference curves is known as an indifference map.
    Assumptions of Ordinal Utility
    i. Utility can only be expressed ordinally.
    ii. The consumer is rational.
    iii. The consumer’s choice must be transitive or consistent.
    iv. The consumer has not reached the saturation point of any commodity.
    v. The marginal rate of substitution is diminishing.

    3. LABOUR MARKETS
    Demand for the factors of production is derived demand. Their demand arises from the demand for goods or services that factor produces. In the case of labour, it is derived from the demand for a product or a service that labour produces.
    The forces of demand and supply govern labour markets like other goods markets. The demand and supply of labour will determine the wages or price paid for labour services. An increase in demand for a commodity leads to an increase in the quantity of labour. For example, suppose there is an increase in the price of rice, which makes its production more profitable because an increase in the price of rice leads to an increase in the value of the marginal product of labour. That is, with a higher price, the added output from an extra worker is more valuable than before. Rice farmers will seek to increase production in order to take advantage of the price increase, in doing so they will hire more workers.
    On a demand curve that shows the relationship between demand and wages, an increase in demand leads to an increase in wages and a decrease in demand leads to a decrease in wages

  170. Anyiam Maryjane Chiamaka says:

    NAME: ANYIAM MARYJANE CHIAMAKA
    REG NO: 2021/243498
    DEPARTMENT: NURSING SCIENCE.

    1. ELEMENTARY THEORY OF UTILITY
    Utility is the ability of goods or services to satisfy human wants. It is the satisfaction or pleasure a consumer derives from the use of a commodity. The concept of utility is used to express a consumer’s taste and preference; however, utility itself is difficult to measure.
    Although utility cannot be measured directly, it can be measured by means of consumer theories, which assume that a consumer will strive to attain maximum utility using his limited resources. When a consumer derives satisfaction from the use of goods or services, the goods or services possess a utility, which is relative to that consumer.
    Utility is classified into four types;
    1. Time Utility: The quicker a product or service can be purchased and used at that time, the higher its perceived utility. Time utility is always high in times of scarcity. For example, the time utility of a bottle of cold water is higher in hot weather than it is in cold weather
    2. Form Utility: The transformation ability of goods and services to suit the needs of a consumer gives it added value. Some goods have no utility until they are transformed into a form that can be utilized by the consumer. An example is flour, which does not give direct satisfaction but must be in form of bread, cake e.t.c for the consumer to derive satisfaction
    3. Place Utility: This is the ability of goods and services to satisfy a need within a location. The more accessible a product or service is within a location, the higher its place utility. A bookshop offers no satisfaction on a construction site but has utility in a school
    4. Possession utility: This is the satisfaction derived from the ownership of goods and services. The more benefits obtained from owning goods and services, the higher its possession utility. A man who owns a car obtains more satisfaction than if he borrows a car

    2. CARDINAL AND ORDINAL SCHOOLS OF THOUGHTS
    A. The Cardinal School of Thought:
    This school of thought emphasizes that utility is measurable i.e that the quantity of goods and services that satisfy a consumer can be measured using numbers 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.

    B. The Ordinal School of Thought:
    The ordinal approach to consumer utility states that utility cannot be scaled in numbers but can only be ranked. It requires that consumers make arrange various commodities that give the same satisfaction level in order of preference. This approach makes use of an indifference curve.
    Indifference Curve
    An indifference curve indicates the satisfaction levels obtained from consuming two commodities. A combination of indifference curves is an indifference map.
    Assumptions of Ordinal Utility
    i. Utility can only be expressed ordinally.
    ii. The consumer is rational.
    iii. The consumer’s choice must be transitive or consistent.
    iv. The consumer has not reached the saturation point of any commodity.
    v. The marginal rate of substitution is diminishing.

    3. LABOUR MARKETS
    Demand for the factors of production is derived demand. Their demand arises from the demand for goods or services that factor produces. In the case of labour, it is derived from the demand for a product or a service that labour produces.
    The forces of demand and supply govern labour markets like other goods markets. The demand and supply of labour will determine the wages or price paid for labour services. An increase in demand for a commodity leads to an increase in the quantity of labour. For example, suppose there is an increase in the price of corn, which makes its production more profitable because an increase in the price of corn leads to an increase in the value of the marginal product of labour. That is, with a higher price, the added output from an extra worker is more valuable than before. Farmers will seek to increase production in order to take advantage of the price increase, in doing so they will hire more workers.
    On a demand curve that shows the relationship between demand and wages, an increase in demand leads to an increase in wages and a decrease in demand leads to a decrease in wages

  171. Anyiam Maryjane Chiamaka says:

    NAME: ANYIAM MARYJANE CHIAMAKA
    REG NO: 2021/243498
    DEPARTMENT: NURSING SCIENCE.

    1. ELEMENTARY THEORY OF UTILITY
    Utility is the ability of goods or services to satisfy human wants. It is the satisfaction or pleasure a consumer derives from the use of a commodity. The concept of utility is used to express a consumer’s taste and preference; however, utility itself is difficult to measure.
    When a consumer derives satisfaction from the use of goods or services, the goods or services possess a utility relative to that consumer.
    Utility is classified into four types;
    1. Time Utility: The quicker a product or service can be purchased and used at that time, the higher its perceived utility. Time utility is always high in times of scarcity. For example, the time utility of a bottle of cold water is higher in hot weather than it is in cold weather
    2. Form Utility: The transformation ability of goods and services to suit the needs of a consumer gives it added value. Some goods have no utility until they are transformed into a form that can be utilized by the consumer. An example is flour, which does not give direct satisfaction but must be in form of bread, cake e.t.c for the consumer to derive satisfaction
    3. Place Utility: This is the ability of goods and services to satisfy a need within a location. The more accessible a product or service is within a location, the higher its place utility. A bookshop offers no satisfaction on a construction site but has utility in a school
    4. Possession utility: This is the satisfaction derived from the ownership of goods and services. The more benefits obtained from owning goods and services, the higher its possession utility. A man who owns a car obtains more satisfaction than if he borrows a car

    2. CARDINAL AND ORDINAL SCHOOLS OF THOUGHTS
    A. The Cardinal School of Thought:
    This school of thought emphasizes that utility is measurable i.e that the quantity of goods and services that satisfy a consumer can be measured using numbers 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.

    B. The Ordinal School of Thought:
    The ordinal approach to consumer utility states that utility cannot be scaled in numbers but can only be ranked. It requires that consumers make arrange various commodities that give the same satisfaction level in order of preference. This approach makes use of an indifference curve.
    Indifference Curve
    An indifference curve indicates the satisfaction levels obtained from consuming two commodities. A combination of indifference curves is an indifference map.
    Assumptions of Ordinal Utility
    i. Utility can only be expressed ordinally.
    ii. The consumer is rational.
    iii. The consumer’s choice must be transitive or consistent.
    iv. The consumer has not reached the saturation point of any commodity.
    v. The marginal rate of substitution is diminishing.

    3. LABOUR MARKETS
    Demand for the factors of production is derived demand. Their demand arises from the demand for goods or services that factor produces. In the case of labour, it is derived from the demand for a product or a service that labour produces.
    The forces of demand and supply govern labour markets like other goods markets. The demand and supply of labour will determine the wages or price paid for labour services. An increase in demand for a commodity leads to an increase in the quantity of labour. For example, suppose there is an increase in the price of corn, which makes its production more profitable because an increase in the price of corn leads to an increase in the value of the marginal product of labour. That is, with a higher price, the added output from an extra worker is more valuable than before. Farmers will seek to increase production in order to take advantage of the price increase, in doing so they will hire more workers.
    On a demand curve that shows the relationship between demand and wages, an increase in demand leads to an increase in wages and a decrease in demand leads to a decrease in wages

  172. Nwokoye victoria says:

    utility is the satisfaction that a consumer derives from consuming a commodity at any particular time. utility is measured in utils
    There are types of utility.
    1) place utility is the satisfaction derived from consuming a commodity due to its geographical location.
    2) Time utility is the satisfaction derived from a commodity during the time needed.
    3) form utility is the satisfaction derived from a commodity when it has been turned from its original state to another form through manufacturing.

    2) concept of utility can be analysed by the following school of thought
    a) cardinal School of thought so that utility can be measured using numbers from 0 to infinity
    b) ordinal school of thought says that utility can only be ranked

    3) if labour productivity increases firms will demand more labour at each wage rates and the firm’s demand for labour itself will increase

  173. Onunkwo chisom Cynthia says:

    Onunkwo chisom Cynthia
    2021/241349
    Economics department
    Answers

    1) The theory of utility focused on the satisfaction derived from the consumption of a particular commodity by an individual at a given time.
    2) the cardinal
    And the ordinal school of thought.
    The cardinal school of thought argues that utility the utility of a commodity can be measured in units called utils. The cardinal utility school of thought also based on the assumption that all consumers are rational and that utility decreases with increased consumption of that commodity.
    The ordinal school of thought argues on the impossibly of utility to be measured but can be ranked according to the level of satisfaction expected from the consumption.
    3) labour
    The demand for labour refers to the quantity of human effort required by entrepreneurs for carrying out production.
    The demand for labour is a derived demand because labour is not required for its own sake but fir what it can help to produce.

  174. Okechukwu Stanley says:

    NAME: OKECHUKWU CLETUS CHIBUEZE
    REG. NO: 2021/246805
    DEPT.: ECONOMICS
    COURSE: ECO 101
    DATE: 10/03/2023

    1. BRIEFLY DISCUSS THE ELEMENTARY THEORY OF UTILITY: in economics, utility theory tries to explain the behaviour of individuals consumer in an economy.
    Utility theory state 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 over time
    2. MENTION AND DISCUSS THE DIFFERENT VIEW OF UTILITY ACCORDING TO THE TWO SCHOOLS OF THOUGHT WHICH YOU HAVE BEEN TAUGHT:
    a. Cardinal utility school of thought: it states that the level of satisfaction a consumer acquires after consuming any good and services can be measurable and expressed in quantitative number
    b. Ordinal school of thought: ordinal school of thought States that the level of satisfaction a consumer obtains after consuming various commodity cannot be measured in numbers but can be arranged in the order of preference
    3. EXPLAIN THE DEMAND FOR PRICING OF PRODUCTIVE FACTORS EMPHASIZING ON THE LABOUR MARKET:
    a. Demand for labour: the demand for labour is an economis principle derived from the demand for firm’s output. That is , it demand for a firm’s output increase the firm, will demand more labour,thus hiring more staff
    b. Pricing of labour: cost of labour is the amount paid by an employer to benefits, plus related payroll taxes and benefits labour cost is an important value that finance an accounting professional calculate to determine the direct and indirect price that a company pays for labour

  175. Isienyi Abumchukwu Treasure DEPARTMENT: Science Laboratory Technology. REG NUMBER: 2020/242950. FACULTY: Physical Science says:

    1. The elementary theory of utility is a foundational concept in economics that explains how individuals make decisions about what goods and services to consume. The theory suggests that individuals make choices based on their preferences and the satisfaction or utility that they derive from consuming different goods and services.
    The basic premise of the theory is that people have different preferences for different goods and services, and they seek to maximize their total satisfaction or utility from consuming them. Utility is an abstract measure of the satisfaction or happiness that individuals derive from consuming goods and services.
    The theory of utility assumes that individuals make rational choices based on the marginal utility that they derive from consuming an additional unit of a good or service. Marginal utility refers to the additional satisfaction or utility that an individual gains from consuming an additional unit of a good or service. The law of diminishing marginal utility states that as an individual consumes more of a good or service, the additional satisfaction or utility that they derive from each additional unit decreases.
    The theory of utility also assumes that individuals face budget constraints, meaning they have limited income or resources to spend on goods and services. Therefore, individuals must make choices based on their budget constraints and the relative prices of different goods and services.
    Overall, the elementary theory of utility is an important concept in economics that helps explain how individuals make decisions about what goods and services to consume based on their preferences, the satisfaction they derive from consumption, and their budget constraints.

    2. The two main schools of thought on utility are the classical and neoclassical schools of economics. Each school has a different view of utility and its role in economic decision-making.

    Classical View of Utility:
    According to the classical view, utility is a subjective measure of the satisfaction or pleasure that an individual derives from consuming goods or services. The classical economists believed that utility is difficult, if not impossible, to measure and cannot be used as a reliable guide for economic decision-making.
    The classical economists viewed utility as a means to an end rather than an end in itself. They believed that the primary goal of economic activity was the accumulation of wealth, not the maximization of utility. In other words, they believed that people make economic decisions based on their desire to increase their wealth rather than their desire to maximize their satisfaction or pleasure.

    Neoclassical View of Utility:
    The neoclassical economists, on the other hand, view utility as a quantifiable measure of the satisfaction or pleasure that an individual derives from consuming goods or services. They believe that utility can be measured and used as a reliable guide for economic decision-making.
    According to the neoclassical view, individuals are rational decision-makers who seek to maximize their utility or satisfaction from consuming goods and services. They make choices based on their preferences and the prices of goods and services, and aim to allocate their resources in a way that maximizes their utility.
    The neoclassical view of utility also considers the diminishing marginal utility of consumption. This means that as an individual consumes more of a good or service, the marginal utility they derive from each additional unit consumed diminishes. Therefore, individuals will allocate their resources in a way that maximizes their overall utility, taking into account the marginal utility of each additional unit consumed and the prices of goods and services.

    Overall, while the classical economists viewed utility as a subjective and immeasurable concept, the neoclassical economists view it as a quantifiable measure of satisfaction or pleasure that individuals aim to maximize through rational decision-making.

    3. The demand for productive factors, including labor, refers to the quantity of inputs that firms are willing and able to hire at various prices. The pricing of productive factors, on the other hand, refers to the wage rates or payments that workers receive for their services.
    The demand for labor is influenced by a range of factors, including the productivity of labor, the demand for the goods and services that labor produces, the availability of substitutes for labor (such as automation or outsourcing), and the cost of other productive factors (such as capital). In general, as the productivity of labor increases or the demand for goods and services produced by labor rises, the demand for labor increases. Conversely, as the cost of other productive factors (such as capital) falls or the availability of substitutes for labor increases, the demand for labor may decrease.
    The pricing of labor is influenced by the supply and demand for labor in the market. As the demand for labor increases relative to the supply, the wage rate tends to rise, and as the supply of labor increases relative to demand, the wage rate tends to fall. Additionally, the bargaining power of workers, the level of education and skills of workers, and other factors such as government regulations can also influence the wage rate.
    In general, the labor market operates in a competitive framework, where workers and firms are price-takers, meaning they must accept the wage rate and employment level determined by market forces. However, in certain cases, workers may have some bargaining power, such as when they possess specialized skills or when there are labor unions present.
    In summary, the demand for labor is determined by the productivity of labor and the demand for goods and services produced by labor, while the pricing of labor is determined by the supply and demand for labor in the market and influenced by other factors such as the bargaining power of workers and government regulations.

  176. Ubosi chisom onaopemiposi. Reg number; 2021/246186. Faculty; VOCATIONAL AND TECHNICAL EDUCATION. DEPARTMENT; BUSINESS EDUCATION says:

    1.Briefly discuss the elementary theory for utility
    Utility can be defined as the amount of satisfaction derived from the consumption or use of goods and services. Utility theory bases its belief upon individual preference. 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 preference. 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 theory is very important in the discipline of economics. Assumptions of utility theory; completeness, monotonicity, rationality
    2. Mention and discuss the different views of utility according to the two schools of thoughts which you have been taught.
    Answer
    I. Cardinal utility: it explains that satisfaction level after consuming any goods or services can be scaled in terms of countable numbers. This means that utility are measured based on utility. This theory was applied by PROF ALFRED MARSHALL
    ii. 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. This theory was applied by PROF JOHN R. HICKS
    3.Explain the demand for and pricing of productive factors emphasizing on the labour market
    Answer
    Demand 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.

  177. Okafor Favour Chinaza says:

    Department: Business education
    Faculty: vocational and technical education
    Reg no: 2021/244313
    Course: Eco 101
    1. Utility is a term used to determine the worth or value of a good or service. Also, utility is the total satisfaction or benefit derived from consuming a good or service. In practice, a consumer’s utility is usually impossible to measure or quantify. 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. This is what 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 unit called “utils”.
    2. 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. 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.
    ii. ordinal school of thought: This concept of ordinal utility states that the level of satisfaction a consumer obtains after consuming various commodities cannot be arranged in numbers but can be arranged in the order of preference. It is more practical and sensible . 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
    3. This states that if labour productivity increases, firms will demand more labour at each wage rate and the firm’s demand for labour itself will increase. Also if the price of a factor decrease this will also lead to increase in demand.

  178. Ugwu Anthonia chinazaekpere says:

    Name : Ugwu Anthonia chinazaekpere
    Reg. No: 2021 /243015
    Email :ugwuanthoniachy22@gmail. Com
    QUESTION ONE
    Elementary theory of utility
    Utility can be defined as the ability of goods and services to satisfy unlimited human wants. It can also be defined as the satisfaction, pleasure or fulfillment an individual derives from the consumption of a particular goods and services. Therefore, when a consumer derives satisfaction from the consumption of any commodity or services, it can be said that the commodity or services possesses utility. In other words, any commodity or services 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. This goes a long way to justifying the saying that “one man’s meat is another man’s poison “The concept of utility is used to express consumer’s taste and preferences.
    The analysis of consumer’s taste and preferences is a crucial step in Determining how a consumer maximizes utility in spending income. The utility of individual is hard to measure but how ever it can be determined indirectly from the consumer behavior as consumer tends to satisfy his or her want by dividing his limited resources between the various goods and services that gives him satisfaction.
    Utility therefore, is relative to a consumer, depending on time, place, form etc. A commodity that can satisfy a consumers want at a particular point in time and place may not satisfy another’s want. Utility then depends on Individuals time and place and the form of the commodity.
    QUESTION TWO
    Different views of utility according to the two schools of thought :
    The Cardinal School Of Thought :
    This school of thought emphasizes that utility is measurable. This means that 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 cardinal school of thought assumes that ;
    Utility is measurable
    The consumer is rational
    There is diminishing marginal utility.
    Total Utility (TU) depends on the quantity consumed.
    Money income of the consumer is held constant.
    2. The Ordinal School Of Thought:
    This school of thought emphasizes that utility is ordinal which means that utility could be ranked at the various levels of consumption. It requires that consumer should make a scale of preference and choose between the various commodities that gives him thesame level of satisfaction. The ordinal approach is usually analyzed using indifference curve which indicates the level at which consumer strains the highest level(s) of satisfaction from the consumption of two or more commodities that gives him thesame level of satisfaction.
    Question Three
    The demand for and pricing of productive factor emphasizing on labour:
    Labor market like other goods market in the economy is governed by the factors of Demand and supply . The supply and demand for labour determine the wage or price paid for labour services. Like all price, the price of labor (wage) depends on supply and demand. The demand curve reflects the value of the marginal product of labour. At equilibrium, workers receive the value of their marginal contribution to the production of goods and services.

  179. Okafor Chukwuemelie Joshua says:

    Okafor Chukwuemelie Joshua
    2021/242482
    Nursing sciences

    1) Briefly discuss the elementary theory of utility.
    Utility refers to the ability or service 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. 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 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 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 possess utility, which is relative to the consumer depending on time, place, form and possession.
    2) Mention and discuss the different views of utility according to the two schools of thoughts which you have been taught.
    I. The Cardinal School Of Thought: This school of thought emphasizes that utility is measurable. This means that the quality of goods or services that satisfied the need of a consumer can be evaluated through the use of figures ranging from zero to infinity.
    There are five assumptions of the cardinal school of thought. There assumptions are derived from the concept of total utility, averages utility and marginal utility.
    Assumptions of Cardinal Approach.
    1) Total Utility (TU) depends on the quality of goods or services.
    2) Money income of the consumer is held constant.
    3) There is diminishing marginal utility (MU).
    4) The consumer is rational.
    5) Utility is measurable.
    II. The Ordinal School of thought: The ordinal approach of utility require that consumers make a scale of preference, by choosing between the various commodities that give 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 (a curve that indicates the levels of satisfaction attained by a consumer from the consumption of the commodities). A combination of indifference curve is known as an indifference map.
    The term ordinal means ranking or ordering like first, second, and third. Thus, the ordinal utility analysis implies that the consumer is capable of simply comparing the utility that has derived from different goods or different units. It means ordinal utility does not require that the consumer should be in a position to measures the utility from different goods or different combinations of goods.
    In ordinal utility analysis, an individual is observed to prefer one choice over others. Preferences can be well-ordered from utmost filling to tiniest filling. Only the ordering is important; the size of numerical values is not 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 from ice-cream is twice as desirable as a utility of 50 from chocolate. There is no need for a quantitative concept of utility in ordinal utility analysis.
    Assumptions of Ordinal Utility Analysis
    1) Rationality of Consumer
    2) Ordinal Measurement
    3) Transitivity
    4) Consistency
    5) Non- satiety

    3) Explain the demand for and pricing of productive factors emphasizing on the labour market.
    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.
    Labour Markets 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. Suppose than an increase in the price of rice has made rice production more profitable than before. This is because the increase in the price of rice will increase the value of the marginal product of labour.
    That is, with higher price, the added output from an extra worker is more valuable than before. Rice farmers would want to increase rice production to take advantage of the increase in price. To do so, they will hire more workers. This means that the demand curve will shift from left to right.

  180. Achiben chizaram 2021/243605 says:

    Achiben Chizaram Paschaline
    2021/243605
    Medical Labouratory Science
    achibenzaram@gmail.com

    No1. BRIEFLY DISCUSS THE ELEMENTARY THEORY OF UTILITY
    An economic good yields utility to the extent to which its useful for satisfying a consumers want or need. The theory of utility in economics refers to the value or worth of a certain good, service or item. It suggests that goods, services and items can be ranked according to how useful they are as stated by the Swiss Mathematician Daniel Bernoulli in the 18th century. Utility theory is a related theory ie consumers make decisions based on the satisfaction they expect to recieve from (thier preference) an action even when outcomes are uncertain. for example gold is very useful, has scarcity and a great utility and so is very expensive. The utility here is correlated to the price of gold.

    No2. 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 are the Cardnal Utility and the Ordinal utility.
    Cardinal school of thought emphasizes that utility is measurable ie after consuming a given quantity of the commodity, the consumer can simply evaluate his satisfaction through the use of figures usually from zero to infinity (prof. Marshalls theory). This school of thought is applied to a single commodity where the utility of a single commodity is treated independent of other commodities. Example; fried rice gives chioma 60 utils of satisfaction, whereas jellof rice gives her only 40 utils. here her utility is measured based on the utils.
    Ordinal school of thought/utility explains that the level of satisfaction after consumption of goods and services cannot be scaled in numbers, however it can be organised in an order of preference (prof JR Hicks theory). Example; chioma gets more satisfaction from fried rice compared to that of jellof rice. Utility here is based on satisfaction.

    NO3. EXPLAIN THE DEMAND FOR AND PRICING OF PRODUCTIVE FACTORS EMPHASIZING ON LABOUR MARKET
    Demand for labour is defined as the amount of labour firms/employers seek to hire during a given time period at a particular wage rate. The demand for labour as a productive factor is derived demand ie it is demanded not for its own sake but for its contribution to the labour market. An increase in labour productivity leads to an increase in the demand for labour by firms at each wage rate.
    Pricing of productive factors in the labour market is associated with prices that an entrepreneur pays to avail the services rendered by the different factors of production. for example in the labour market an entrepreneur needs to pay wages to labour, rent for land , and interests for capital so that maximum profit can be earned.

  181. Prince Emmanuel says:

    Name: Prince Emmanuel Obia
    Department: Economics
    Level: 100
    Reg No.: 11024701IE
    Course: Eco 101

    1. The elementary theory of utility is a theory in economics that explains how individuals make choices based on the satisfaction they derive from consuming goods and services. It is based on the concept of utility, which is the level of satisfaction or happiness an individual derives from consuming a good or service.

    According to the elementary theory of utility, individuals will choose to consume goods and services that provide them with the highest level of utility or satisfaction. They will continue to consume a good or service until the marginal utility, or the additional utility derived from consuming one more unit of the good, is equal to the price of the good.

    In other words, individuals will try to maximize their total utility subject to their budget constraint. This means that they will allocate their income to purchase goods and services that provide them with the highest level of utility, given their income and the prices of the goods.

    The elementary theory of utility assumes that individuals have a fixed set of preferences that do not change over time, and that they are able to make rational choices based on these preferences. It also assumes that individuals have perfect information about the goods and services they are consuming, and that they are not influenced by factors such as advertising or social pressure.

    Overall, the elementary theory of utility provides a framework for understanding how individuals make choices based on their preferences and the prices of the goods and services available to them.

    2. The two main schools of thought on the concept of utility are the classical and the neoclassical schools. The classical school of thought was dominant in economics from the late 18th century until the mid-19th century, while the neoclassical school emerged in the late 19th century and remains the dominant economic paradigm today.

    Classical View of Utility:

    The classical view of utility emphasized the objective nature of utility. According to this view, utility was seen as a measure of the physical pleasure or pain that an individual derived from consuming a good or service. Utility was therefore viewed as a measurable quantity that could be compared across individuals.

    The classical view of utility was based on the assumption that individuals had fixed preferences that did not change over time. This meant that individuals were able to make rational choices based on their preferences and the prices of the goods and services available to them.

    Neoclassical View of Utility:

    The neoclassical view of utility, on the other hand, emphasized the subjective nature of utility. According to this view, utility is a purely mental concept that varies from person to person and cannot be measured or compared across individuals.

    The neoclassical view of utility is based on the assumption that individuals have a subjective utility function that reflects their preferences for different goods and services. This utility function is not fixed and can change over time, as individuals’ preferences change in response to changes in their circumstances or experiences.

    The neoclassical view of utility also emphasizes the idea of marginal utility, which refers to the additional satisfaction or happiness an individual derives from consuming one more unit of a good or service. According to the neoclassical view, individuals will continue to consume a good or service until the marginal utility is equal to the price of the good or service.

    Overall, the neoclassical view of utility is more widely accepted in modern economics. It recognizes the subjective nature of human preferences and provides a more flexible framework for understanding how individuals make choices based on their preferences and the prices of the goods and services available to them.

    3. The demand for productive factors, including labor, is determined by the interaction of supply and demand in the market. In general, the demand for labor depends on the marginal productivity of labor, which is the additional output that a firm can produce by hiring one more unit of labor.

    Firms will demand more labor as long as the marginal productivity of labor exceeds the wage rate. If the wage rate is too high relative to the marginal productivity of labor, then firms will demand less labor and may substitute other factors of production, such as capital, for labor.

    In addition to the marginal productivity of labor, the demand for labor is also influenced by factors such as the level of output demand, the prices of other productive factors, and technological change. For example, if demand for a firm’s product increases, then the firm may demand more labor to produce more output.

    On the other hand, the supply of labor is determined by factors such as the population size, age distribution, educational attainment, and labor force participation rates. The supply of labor also depends on non-monetary factors such as the availability of childcare, transportation, and other social factors.

    The pricing of labor is determined by the intersection of the supply and demand curves for labor. If the demand for labor exceeds the supply of labor, then the wage rate will increase. If the supply of labor exceeds the demand for labor, then the wage rate will decrease.

    In addition to market forces, labor pricing is also influenced by government policies such as minimum wage laws, collective bargaining agreements, and labor regulations. These policies can impact the demand for and supply of labor, as well as the wage rate.

    Overall, the demand for and pricing of labor are complex and dynamic phenomena that are influenced by a variety of economic, social, and political factors.

  182. Neboh odinakachukwu Maria says:

    NEBOH ODINAKACHUKWU MARIA
    ECONOMICS DEPARTMENT
    2021/241342
    nebohmaria22@gmail.com
    1.ELEMENTARY THEORY UTILITY
    Utility is a term used to describe the pleasure or satisfaction a consumer receives from consuming a good or service .OR. The satisfaction you derive from consuming a particular product .
    Types of utility.
    a. Time utility – Is the satisfaction one derives from consuming a particular product at a particular time. Example – The utility of smoking Indian hemp and drinking of beer is the satisfaction one derives from consuming such a commodity at a particular time .
    b. Place utility – Is the process of making goods or services available in locations that allow consumers to easily access products and service.
    c. Form utility – Is the transformation of goods in order to derive satisfaction from it. Examples – Flour to cake, bread etc.
    d. Possession utility – Is the value a consumer derives from owning a specific product and being able to use it as soon as possible. Example – the possession of a new car.

    2.THE TWO SCHOOLS OF THOUGHT Are.
    CARDINAL AND ORDINAL SCHOOL OF THOUGHT.
    a. Cardinal school of thought means that the satisfaction we derive from consuming goods or services can be measured numerically. The unit of this form of measurement is known as a ‘util’. To achieve cardinal measurement of goods utility is to look at the prices individuals are willing to pay for those goods. For example – Pizza gives Odinaka 60 utils of satisfaction, whereas burger gives her only 40 utils .
    b. Ordinal school of thought means 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 – Odinaka gets more satisfaction from a pizza as compared to that of a burger .

    3. THE DEMAND FOR AND PRICING OF PRODUCTIVE FACTOR EMPHASIZING ON THE LABOUR MARKET.
    We can say that labour market refers to the supply of and demand for labour, in which employees provide the supply and employers provide the demand.
    The demand for labour is derived demand, that is labour is not demanded for its own sake, but for what it can produce. For r instance, if the demand for a good decreases, the demand for the workers producing that good will also decrease. And if the demand for a good increases, there will also be an increased demand for the workers producing that good.
    Pricing of labour – Factor pricing is associated with the prices that an entrepreneur pays to avail the derives rendered by the factors of production. Example – an entrepreneur needs to pay wage to labour, rents for availing land and interest for capital so that he/she can earn maximum profit.

  183. Nwachukwu Emmanuel Ginikachi says:

    NAME. Nwachukwu Emmanuel Ginikachi
    REG NO. 19754367BJ
    DEPT. Economics
    COURSE. ECO 101

    Answers
    1. Utility refers to the ability of goods and services, to satisfy unlimited human wants. It can also be viewed as the satisfaction, pleasure or fulfilment an individual derives from the consumption of goods and services.
    Goods are desired because of their ability to satisfy human wants. The concept of utility is used to equate consumers taste and preferences.

    2. THE CARDINAL SCHOOL OF THOUGHT
    This school of thought emphasizes that Utility is measurable. This means that the quantities of goods and services that satisfy the needs of a consumer can be evaluated through the use of figures, from Zero (0) to infinity.

    I). THE ORDINAL SCHOOL OF THOUGHT
    The ordinal schools of thought to utility requires that consumers, makes a scale of preferences, by choosing between the various commodities that gives them the same level of satisfaction. This approach makes use of an indifference Curve.

    3. DEMAND FOR LABOUR
    Labour markets like other goods market in the economy are governed by the forces of demand. The demand for labour, determines the wage or prices paid for Labour services.

    ii). PRICING FOR LABOUR MARKET
    When the demand for a factor of labour is required in high rate, the wage rate of labour demanded decreases. When a certain demand for labour decreases, the wage rate for Labour increases. Causing a competitive markets, amongs Labourers.

  184. Ejiofor Chinasa Doris Reg no:11212044HD says:

    1: Utility theory in economics pertains to the value or Worth of a certain good, service, or item . It suggests that good, service,or items can be ranked according to their usefulness or satisfaction derived from them.2:The two school of thought are; (a) Ordinal and (b) cardinal.(a) Ordinal utility school of thought measures the utility of goods subjectively. Ordinal depends on qualitative measurement which makes it realistic. (b) Cardinal utility school of thought evaluates. Cardinal is not much realistic as compared to the ordinal utility as quantitative evaluation of utility is not practicable. 3:The demand for labour describes the amount and market wage rate workers and employers settle upon at any given moment. 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 labor demand outwards.

    • Ejiofor Chinasa Doris Reg no:11212044HD says:

      1: A term in economics that refers to the total satisfaction or benefit from consuming a good and service. Utility theory in economics pertains to the value or Worth of a certain good, service, or item . It suggests that good, service,or items can be ranked according to their usefulness or satisfaction derived from them.2:The two school of thought are; (a) Ordinal and (b) cardinal.(a) Ordinal utility school of thought measures the utility of goods subjectively. Ordinal depends on qualitative measurement which makes it realistic. (b) Cardinal utility school of thought evaluates. Cardinal is not much realistic as compared to the ordinal utility as quantitative evaluation of utility is not practicable. 3:The demand for labour describes the amount and market wage rate workers and employers settle upon at any given moment. 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 labor demand outwards.

      • Ejiofor Chinasa Doris Reg no:11212044HD says:

        1: A term in economics that refers to the total satisfaction or benefit from consuming a good and service. Utility theory in economics pertains to the value or Worth of a certain good, service, or item . It suggests that good, service,or items can be ranked according to their usefulness or satisfaction derived from them.2:The two school of thought are; (a) Ordinal and (b) cardinal.(a) Ordinal utility school of thought measures the utility of goods subjectively. Ordinal depends on qualitative measurement which makes it realistic. (b) Cardinal utility school of thought evaluates. Cardinal is not much realistic as compared to the ordinal utility as quantitative evaluation of utility is not practicable. 3:The demand for labour describes the amount and market wage rate workers and employers settle upon at any given moment. 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 labor demand outwards.

  185. Ejiofor Chinasa Doris Reg no:11212044HD says:

    2 seconds ago
    1: Utility theory in economics pertains to the value or Worth of a certain good, service, or item . It suggests that good, service,or items can be ranked according to their usefulness or satisfaction derived from them.2:The two school of thought are; (a) Ordinal and (b) cardinal.(a) Ordinal utility school of thought measures the utility of goods subjectively. Ordinal depends on qualitative measurement which makes it realistic. (b) Cardinal utility school of thought evaluates. Cardinal is not much realistic as compared to the ordinal utility as quantitative evaluation of utility is not practicable. 3:The demand for labour describes the amount and market wage rate workers and employers settle upon at any given moment. 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 labor demand outward

  186. 1.Utility is the amount of satisfaction that a consumer derives from the consumption of goods and services at a particular time.
    Utility theory is based on the fact that satisfaction which consumers derived from consumption of goods and services can be measure quantitative.

    2.Cardinal school of thought and Ordinal school of thought.
    a.Cardinal school of thought:This emphasizes that utility is measurable using Utils.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 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.

    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.

  187. Nezi Goodness Chinonyerem says:

    NAME: NEZI GOODNESS CHINONYEREM
    REG. NO.: 2021/242474
    DEPARTMENT: NURSING SCIENCES
    E-MAIL ADDRESS: goodnessnezi@gmail.com

    1. Briefly discuss the elementary theory of Utility.

    Utility, in economics refers to the amount of level of satisfaction a consumer derives or get from the consumption of a product or service. People decide what to purchase based on the level of satisfaction they feel they will derive from the item or service. This explains why goods with higher utility are prioritized higher in a person’s budget.
    As an aspect of economics, utility measures consumer satisfaction from a product or service, it offers better understanding of consumer preference and subsequently, provides insight into what drives demand, which may affect the cost of a product or a service.
    Utility is of four types: form, time, place, and possession.

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

    The different views of utility according to the two schools of thought are the i. Cardinal utility and ii. Ordinal utility

    i. Cardinal Utility: In this approach, the numerical measurement of the satisfaction derived by the consumers from consumption of a good or service is emphasized. This implies that 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 cardinal utility measures the utility objectively, however it is less realistic as quantitative measurement of utility is not possible. It is based on marginal utility analysis and is measured in terms of utils, i.e units of utility.

    ii. Ordinal utility: The Ordinal approach states that the satisfaction which a consumer derives from the consumption of product or service cannot be measured numerically or in exact numbers but can only be ranked or put into order. The ordinal utility has a subjective measurement, it is also more realistic as it relies on qualitative measurement. Unlike the cardinal utility which is based on marginal utility analysis, the ordinal utility is based on indifference curve analysis. It is measured not in units but in terms of ranking of preferences of a commodity when compared to each other.

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

    Demand for Labour is defined as the amount of labour that an economy or firm seek to hire or employ during a given time period at a particular wage rate. The demand for labour as a factor of production is a derived demand, this means that labour is demanded for its contribution to the production of goods and services and not for its own sake. 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.

    Businesses require labour and capital as inputs to their production process when producing goods and services. If there is an increase in demand for a firm’s output increase, the firm’s demand for labour will as well increase thus making the firm to hire more staff. And if there be a decrease for a firm’s output increase, it’s demand for labour will fall and less staff will be retained. With this then, we can say that the demand for labour is an economics principle derived from the demand for a firm’s output.

    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.

    Following the marginal decision rule, a profit – maximizing entity will command additional units of labour. If total revenue derived from the extra output that is produced by hiring on additional unit of labour increase to a higher degree than total cost, the firm will increase its use of labour, thereby, increase profit. It will keep employing more labor up to the point that the extra revenue generated by the additional labor no longer exceeds the extra cost of the labor or a point where the marginal revenue product is equal to the wage rate because it is not efficient for a firm to pay it’s workers more than it will earn in revenues from their labour. This relationship is referred to as the marginal product of labor (MPL) in the economics community.

  188. Ogboluo Favour Chigaemezu says:

    1) The Elementary theory of utility.

    The Elementary 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. 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.
    Therefore , Utility is the satisfaction an individual derives from consumption of a commodity at a particular time, place or form.There are four basic principles that fall under this umbrella, including form utility, time utility, place utility, and possession utility.

    2) The different views of utility according to the two schools of thoughts :

    Cardinal and Ordinal schools of thought are the two predominant schools of thought on utility.

    A. CARDINAL SCHOOL OF THOUGHT:
    The Cardinal 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 cardinal utility believes in measuring the satisfaction level in utils (an arbitrary measure of units of utility).

    B. ORDINAL SCHOOL OF THOUGHT:
    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.
    ordinal utility believes that the satisfaction level cannot be evaluated; however, it can be levelled.

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

    The demand for a factor of production, which is derived from the demand for the goods and services it is used to produce. 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.
    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.
    The demand for labour is called a derived demand because the demand for labor comes from the demand for goods produced by labour.
    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, thus hiring more staff.
    According to the modem theory, the price of a factor of production is determined at a point where the demand and supply curves of the factor intersect each other. This point is known as equilibrium point, where the demand of a factor is equal to its supply.
    The pricing of labour is the total expenditure incurred by employers for the employment of employees. They represent a cost of salaried that is; the sum of all wages paid to employees, as well as the cost of employee benefits and payroll taxes paid by an employer. The cost of labor is broken into direct and indirect (overhead) costs.

  189. Name -Ekeh Jennifer Ebubechi Reg no -10934993DD dept- public Administration and local government says:

    No 1
    The element theory of utility is the theory assumed in economics to interpret the behavior of individual consumers based on the assumption that people can regularly rank order their choice depending upon their preferences it argues that each individual given a list of alternatives, can rank those option In a definite order of preference.
    No 2
    Cardinal utility – it states that utility can be measured that a consumer after consuming a given quantity of a particular, commodity can simply measure his /her satisfaction through the of figure/quantitative numbers
    Ordinal utility – means the level of satisfaction that a consumer, derives after consuming many various commodities cannot be expressed or measured in figures but can be placed in order of preference.the consumer only rank choices in terms of preference . The four types of utility are form utility -which means the value of a consumer receives from a particular product in a way they actually need ,time utility which means when a company provide good and service whenever the consumer needs them, possession utility, place utility etc.
    No 3
    Demand for pricing of productive factors of production which deals with determination of share prices of factors of production which are labor which explains the effort people contribute in production of goods and services. Capital- which explains the machinery used in production of goods and services. Entrepreneur-a person who combines all the factors of production to earn profit , land – is any natural resources used in producing goods and services finally labour market been emphasized on means supply and demand for labour in which employees provide the supply and employee provide the demand.

  190. Name: ELECHI JECINTA CHIEGONU Dept: PUBLIC ADMINISTRATION AND LOCAL GOVERNMENT Reg No: 2021/246882 Course code: ECO 101 Level: 100 level says:

    1) BRIEFLY DISCUSS THE ELEMENTARY THEORY OF UTILITY.
    (a) CONCEPT OF UTILITY THEORY: 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.
    (b) WHAT IS UTILITY?
    Utility refers to the comprehensive benefits obtained from consuming an item or service. Consumers would typically aim to maximise their utility based on rational choice based on economic models. To comprehend the monetary value of an item or service is crucial because it directly impacts demand, and hence pricing, for that service or product. It is impossible to assess and quantify a consumer’s utility in practice.
    (c) WHAT IS 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 is often compared to marginal utility, which is the satisfaction a consumer receives from consuming one additional unit of a good or service.
    (d) MARGINAL UTILITY:
    Marginal utility refers to the additional benefit derived from consuming one more unit of a specific good or service. Consuming units can result in positive, negative, or zero marginal utility. Utility is not constant, and for every additional unit consumed, often the consumer experiences what economists refer to as the diminishing marginal utility, where each additional unit adds less and less marginal utility.
    (e) LAW OF DEMINISHING 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. Marginal utility is the incremental increase in utility that results from the consumption of one additional unit.
    (f) UTILITY MAXIMIZATION AND DERIVATION OF DEMANDS 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 algebraic statement of this utility-maximizing rule is that the consumer will allocate income in a way that satisfies their needs.

    Consumer allocates their income so that the last unit spend on each product yields the same amount of extra utility.

    Demand curve
    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. The price is plotted on the vertical axis, and the quantity demanded on the vertical axis. In general, we said that the demand curve is a downward-sloping curve; this is because of the law of demand. The law of demand states an inverse relationship between price and quantity demanded of a commodity if other things remain the same.
    (g) DERIVATION OF DEMAND CURVE FROM
    UTILITY THEORY:
    Diminishing marginal utility is the basis of the demand curve.

    The normal demand curve slopes downwards from left to right, showing that at a lower price, more of a commodity will be demanded and also at a higher price, less of i will be demanded.

    The explanation for phenomenon lies in the law of diminishing marginal utility. According to this law, successive equal increments of a commodity will yield less and less satisfaction to the consumer.

    At the beginning, when the consumer has very little of the commodity, his marginal utility is very his Therefore, he is ready to pay a high price obtain it. Thus, the higher the price, the lower the quantity demanded.

    However, as the consumer gets more and more of a commodity his marginal utility begins to fall and at this point the price must be reduced. Thus, the lower t price, the higher the quantity demanded.

    2) MENTION AND DISCUSS THE DIFFERENT VIEWS OF UTILITY ACCORDING TO THE TWO SCHOOLS OF THOUGHTS WHICH YOU HAVE BEEN TAUGHT.

    (a) CARDINAL UTILITY THEORY
    (b) ORDINAL UTILITY THEORY

    CARDINAL UTILITY THEORY: 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. It explains that the satisfaction level after consuming any goods or services can be scaled in terms of countable numbers. example Pizza gives Sam 60 utils of satisfaction, whereas burger gives him only 40 utils.
    ORDINAL UTILITY THEORY: 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 3utils 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.

    3) EXPLAIN THE DEMAND FOR AND PRICING OF PRODUCTIVE FACTORS EMPHASIZING ON THE LABOUR MARKET.
    Economists use the term demand to refer to the amount of some good or service consumers are willing and able to purchase at each price. Demand is based on needs and wants—a consumer may be able to differentiate between a need and a want, but from an economist’s perspective they are the same thing. Demand is also based on ability to pay. If you cannot pay for it, you have no effective demand.

    What a buyer pays for a unit of the specific good or service is called price. The total number of units purchased at that price is called the quantity demanded. A rise in price of a good or service almost always decreases the quantity demanded of that good or service. Conversely, a fall in price will increase the quantity demanded. When the price of a gallon of gasoline goes up, for example, people look for ways to reduce their consumption by combining several errands, commuting by carpool or mass transit, or taking weekend or vacation trips closer to home. Economists call this inverse relationship between price and quantity demanded the law of demand. The law of demand assumes that all other variables that affect demand (to be explained in the next module) are held constant.

    Factors of Production are economic goods: scarce means used to achieve an individual’s ends. They are land, labor and capital. Each is examined. Incomes are earned by factor owners as production takes place. There is no separated production and distribution.

    Consumer goods and producer goods are subjectively determined by how they are used.

    Factor pricing is by the Austrian theory of imputation.

  191. AUGUSTINE OKECHI CHUKWU says:

    NAME: AUGUSTINE OKECHI CHUKWU
    MATRIC NO : 2021/244766
    DEPARTMENT: ECONOMICS
    COURSE : ECO 101

    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. 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 or choices in a precise order of preference. Each person has different choices which are set, not changing over time. This theory states that consumers rank products in their minds whenever they are facing a purchase decision. These ranking function drives their budget allocation, which means that resources are poured into the purchases that will bring the highest degree of satisfaction. It is assumed that individual budgets are limited and therefore there is a limited amount of goods or services that can be purchased, taking this into account, an individual will weigh which of the options currently available within the open market is the best suit to fulfill his current set of needs or desires.
    In these cases, preferences also play a key role and these can be defined as a set of predispositions that each individual possesses towards certain brands or products by elements such as colors, shapes, tastes or smells. Utility theory is an economic hypothesis that postulates the fact that consumers make purchase decisions based in the degree of utility or satisfaction they obtain from a given item. This means that the higher the utility level the higher the item will be prioritized in the consumer’s budget. 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.
    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.
    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
    2. Cardinal school of thought: this is a type of utility dat measures numbers from zero to infinity. it explains dat the level of satisfaction a consumer acquires after consuming any goods and services can be measurable in numerical values. therefore, the satisfaction level after consuming any goods or services can be scaled in terms of countable numbers.
    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.
    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.

    Ordinal school of thought: This states tht utility can be ranked according to scale of preference. 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 preferences.
    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 because 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.

  192. Okeke Ruth Ngozi says:

    Name: Okeke Ruth Ngozi
    Reg No: 2021/244119
    Course Code: Eco 101
    Department: Economics
    Faculty: Social Sciences

    1. The theory of Utility is: The benefits or satisfaction which a person gets from the consumption of a good or service is called ” Utility”. Goods are desired because of their ability to satisfy human wants. The concept of utility is expressed when a consumer’s taste and preferences are satisfied. Utility simply means the satisfaction a consumer derives from consuming a particular product or commodity at a particular time.
    There are four major types of Utility such as;
    ( a) Time utility
    ( b) place utility
    ( c) Possession utility
    (d) Form Utility

    (a) Time utility: This is when a good is accessible to customers whenever they need them. This is the satisfaction derived from consuming a commodity at a particular time.
    ( b) Place utility: This can be defined as a satisfaction you derive from how easily it is to obtained a particular commodity or product.
    (c) Possession utility: The satisfaction a consumer gains from owning a certain product or good.
    (d) Form Utility: This is simply the combined resources it took to create the good or service.
    The Concept of Utility include:
    Utility theory is based on the fact that satisfaction which consumers derived from consumption of goods and services can be measure quantitative;
    (i) Totally utility:This is the total amount of satisfaction a consumer derives from the consumption of several quantities of a commodity.
    (ii) Average utility: Is the consumption of per unit of a commodity at a particular time.
    ( iii) Marginal utility: This is the additional satisfaction derived from a commodity.
    Utility Maximisation or Equilibrium:
    This simply means the point where consumer derives maximum satisfaction.When he or her marginal utility is equal to the price of a commodity; Utility Maximazation is the attainment of the greatest possible total utility.
    2. The Different views of of Utility according to two School of Thought are:
    1. Cardinal School of Thought
    2. Ordinal School of Thought

    1. Cardinal School of Thought: This is the approach that emphasizes that utility is measurable, that is, after consuming a giving quantity of a commodity the consumer can simply evaluate his satisfaction through the use of figures which range from zero to infinity and can be measured in ” utiles”. Cardinal utility gives a value of utility to different options that enables consumers to rank the magnitude of how much the prefer one goods to another. Cardinal utility is the utility where the satisfaction derived by consuming a product can be expressed numerically.
    Assumptions of Cardinal School of Thought are as follows:
    * utility can be measurable
    * concept of diminishing marginal utility
    * It assumes that consumers are rational
    * It assumes that income is held constant
    * That total utility depends on the goods and services.
    2. Ordinal School of Thought: This states that the utility/ satisfaction cannot be measured in exact numbers but can only be ranked or put in order. This approach argues that utility/ satisfaction is completely a psychological element and it cannot be expressed in cardinal numbers. This measurement only captures which good or service is better, not how much better it is, by giving giving the magnitude of how much a consumer prefers a good.
    Assumptions of Ordinal School of Thought:
    * Ordinal measurement: The utility is measured ordinary by comparing the satisfaction whether higher or lower by consuming different goods.
    * Consistency: As per this assumption the consumer remains consistent in choice, if there are two goods to prefer over.
    * Non_ satiety: The consumer always prefer 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.

    3. The demand for and Pricing of productive factors emphasizing on the labour market is:
    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
    The factors that affect the demand for labour are;
    * Labour productivity
    * Changes in Technology
    * Changes in the Number of Firm’s
    *Changes in demand for a firm’s product
    * Firm Profitability

    * Labour Productivity: If the 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 outward.
    * Changes in Technology: Changes in technology can cause the demand for labour to increase and decrease depending on the situation.
    * Changes in the number of Firm’s: Changes in the number of firm’s operating in the industry can be an immense effect on the overall labour market.
    * 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 will lead to increase in demand for workers, as firms will need people to manufacture the vehicles.
    * Profitability of Firm’s: If a firm’s profitability increases,bit will be able to hire more workers. This will lead to increase in the demand for labour
    * The Marginal Productivity theory of demand for Labour: The marginal productivity theory of demand for labour states that firms or employers will workers for a particular type until the contribution made by the marginal worker is equal to the cost incurred in hiring new workers
    * The Marginal Productivity theory of demand for labour states that firms or employers will hire workers of a particular type until the contribution made by the marginal worker is equal to the cost incurred by having hired this new worker.

    Labour in demand :
    Making output and pricing decisions, firms must also determine how much of each input to demand. Firms may choose to demand many different kinds of inputs. The two most common are labour and capital. The demand for labour is determined in the labour market. The participants in the labour market are workers and firms. Workers supply labour to firms in exchange for wages. The firm’s demand for labour is an output. If demand for the firm’s output increases, the firm will demand more labour and will hire more workers. If demand for the firm’s output falls, the firm will demand less labour and will reduce it’s work force.
    Marginal revenue Product of Labour: When the firm knows the level of demand for its output, it determines how much labour to demand by looking at the marginal revenue Product of labour is the additional revenue the firm earns by employing one more unit of labour.

  193. Akoru Augustina Akam / 2021/245674 says:

    Q1). The Elementary Theory of Utility
    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 derived from the consumption of goods and services. Goods are desired because of the ability to satisfy human wants. The concept of Utility is used to express consumers taste and preferences. The analysis of consumers taste is a crucial step in determining how a consumer maximize satisfaction in spending income.

    Q2). Two utility schools of thoughts
    i Cardinal school of thoughts and
    ii ordinals school of thoughts
    Cardinal Approach:: 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.
    Ordinals Approach: this 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 level of consumption.

    Q3). Demand for pricing of productive factors: The modern Theory of pricing of factors of production also known as”Demand and supply theory” gives a satisfactory answer to the problem of determining factor prices. According to the theory, just as the price of a commodity is determined by the force of demand and supply, the price of a factor of production is also determined by the demand for that factor and it’s supply.
    Demand for a factor of production: The demand for a factor is not a direct demand but an indirect or derived demand. The demand for labour for example, is not demand for labour himself but infact, demand for goods and services which the labour produces. Thus, when demand goods increases, the demand for the factor which produce those goods would also rise. If demand for goods is elastics, the demand for factors would also be elastics.

  194. Ifeanyichukwu Destiny Ifechukwu 10226448BA says:

    1.

  195. Obieze God'spower Ikechukwu 2021/246123 says:

    The elementary theory of utility is a foundational concept in economics that explains how individuals make choices based on their preferences and constraints. The theory suggests that individuals make choices to maximize their overall satisfaction or happiness, which is represented by the concept of utility.

    According to the theory, individuals have a set of preferences over goods and services, and they will allocate their resources to maximize their overall satisfaction or utility. The utility function represents the relationship between the individual’s preferences and the goods and services that they consume.

    The theory assumes that individuals are rational and make choices based on a cost-benefit analysis. They will choose a combination of goods and services that provides the highest level of utility, given their budget constraint.

    The concept of diminishing marginal utility is also a key part of the elementary theory of utility. This means that as an individual consumes more of a good or service, the additional satisfaction or utility they gain from each additional unit decreases.

    Overall, the elementary theory of utility provides a framework for understanding how individuals make choices and allocate their resources based on their preferences and constraints. It is a fundamental concept in microeconomics and forms the basis for many other economic theories and models.
    No2.)Utility Theory Basics

    rrrronaldooo786@gmail.com
    Briefly discuss the elementary theory of utility.

    The elementary theory of utility is a foundational concept in economics that explains how individuals make choices based on their preferences and constraints. The theory suggests that individuals make choices to maximize their overall satisfaction or happiness, which is represented by the concept of utility.

    According to the theory, individuals have a set of preferences over goods and services, and they will allocate their resources to maximize their overall satisfaction or utility. The utility function represents the relationship between the individual’s preferences and the goods and services that they consume.

    The theory assumes that individuals are rational and make choices based on a cost-benefit analysis. They will choose a combination of goods and services that provides the highest level of utility, given their budget constraint.

    The concept of diminishing marginal utility is also a key part of the elementary theory of utility. This means that as an individual consumes more of a good or service, the additional satisfaction or utility they gain from each additional unit decreases.

    Overall, the elementary theory of utility provides a framework for understanding how individuals make choices and allocate their resources based on their preferences and constraints. It is a fundamental concept in microeconomics and forms the basis for many other economic theories and models.

    NO2.)

    There are two major schools of thought in the study of utility: the classical and the neoclassical. These two schools of thought have different views on the nature and measurement of utility.

    The classical school of thought views utility as objective and measurable. According to this view, utility is an inherent property of goods and services, and it can be objectively measured by the amount of labor required to produce them. This view is based on the classical labor theory of value, which suggests that the value of a good is determined by the amount of labor that goes into producing it.

    The neoclassical school of thought, on the other hand, views utility as subjective and unmeasurable. According to this view, utility is a personal experience and varies from person to person. The neoclassical view is based on the concept of marginal utility, which suggests that the value of a good is determined by the additional utility it provides for the individual.

    The neoclassical school of thought also recognizes the concept of diminishing marginal utility, which means that as an individual consumes more of a good, the additional satisfaction or utility they gain from each additional unit decreases. This concept is not recognized in the classical school of thought.

    In summary, the classical school of thought views utility as objective and measurable, while the neoclassical school of thought views utility as subjective and unmeasurable. The neoclassical school of thought is the dominant school in modern economics and has been the basis for many economic models and theories
    NO3.)
    Utility Theory Basics

    rrrronaldooo786@gmail.com
    Briefly discuss the elementary theory of utility.

    The elementary theory of utility is a foundational concept in economics that explains how individuals make choices based on their preferences and constraints. The theory suggests that individuals make choices to maximize their overall satisfaction or happiness, which is represented by the concept of utility.

    According to the theory, individuals have a set of preferences over goods and services, and they will allocate their resources to maximize their overall satisfaction or utility. The utility function represents the relationship between the individual’s preferences and the goods and services that they consume.

    The theory assumes that individuals are rational and make choices based on a cost-benefit analysis. They will choose a combination of goods and services that provides the highest level of utility, given their budget constraint.

    The concept of diminishing marginal utility is also a key part of the elementary theory of utility. This means that as an individual consumes more of a good or service, the additional satisfaction or utility they gain from each additional unit decreases.

    Overall, the elementary theory of utility provides a framework for understanding how individuals make choices and allocate their resources based on their preferences and constraints. It is a fundamental concept in microeconomics and forms the basis for many other economic theories and models.

    rrrronaldooo786@gmail.com
    Mention and discuss the different views of utility according to the two schools of thoughts which students have been taught

    There are two major schools of thought in the study of utility: the classical and the neoclassical. These two schools of thought have different views on the nature and measurement of utility.

    The classical school of thought views utility as objective and measurable. According to this view, utility is an inherent property of goods and services, and it can be objectively measured by the amount of labor required to produce them. This view is based on the classical labor theory of value, which suggests that the value of a good is determined by the amount of labor that goes into producing it.

    The neoclassical school of thought, on the other hand, views utility as subjective and unmeasurable. According to this view, utility is a personal experience and varies from person to person. The neoclassical view is based on the concept of marginal utility, which suggests that the value of a good is determined by the additional utility it provides for the individual.

    The neoclassical school of thought also recognizes the concept of diminishing marginal utility, which means that as an individual consumes more of a good, the additional satisfaction or utility they gain from each additional unit decreases. This concept is not recognized in the classical school of thought.

    In summary, the classical school of thought views utility as objective and measurable, while the neoclassical school of thought views utility as subjective and unmeasurable. The neoclassical school of thought is the dominant school in modern economics and has been the basis for many economic models and theories.

    NO3.)

    The demand for productive factors, such as labor, refers to the amount of labor that firms are willing and able to hire at a given wage rate. The pricing of productive factors, including labor, is determined by the interaction of supply and demand.

    In the labor market, the demand for labor is derived from the demand for the goods and services that labor produces. Firms will hire workers if the value of the additional output produced by an additional worker is greater than the cost of hiring that worker, which includes the wage rate and any other labor-related costs such as benefits or training.

    The demand for labor is influenced by a variety of factors, including the level of economic activity, the availability of alternative capital and technology, and the relative price of labor compared to other factors of production. For example, if a firm can substitute capital for labor at a lower cost, it may reduce its demand for labor.

    The supply of labor, on the other hand, is derived from the willingness and ability of individuals to work at a given wage rate. The supply of labor is influenced by factors such as the wage rate, the availability of alternative income sources such as government transfers or non-labor income, and demographic factors such as population growth and the age structure of the population.

    The pricing of labor, or the wage rate, is determined by the interaction of labor supply and labor demand. If the demand for labor exceeds the supply of labor, firms may bid up the wage rate to attract workers. Conversely, if the supply of labor exceeds the demand for labor, workers may accept lower wages to secure employment.

    The pricing of labor is also influenced by institutional factors such as minimum wage laws, collective bargaining agreements, and labor market regulations. These factors may affect the bargaining power of workers and firms, which can influence the wage rate.

    In summary, the demand for and pricing of productive factors, including labor, are determined by the interaction of supply and demand. The demand for labor is derived from the demand for the goods and services that labor produces, while the supply of labor is derived from the willingness and ability of individuals to work at a given wage rate. The pricing of labor is influenced by the relative strength of labor demand and labor supply, as well as institutional factors such as minimum wage laws and labor market regulations.

  196. Obieze God'spower Ikechukwu 2021/246123 says:

    NUMBER 1:- The elementary theory of utility is a theory in economics that explains how individuals make choices between different goods and services based on their preferences. It assumes that individuals have rational preferences and seek to maximize their satisfaction or “utility” from consuming goods and services.

    According to this theory, individuals allocate their limited resources (such as income) to maximize their utility. Utility is a measure of satisfaction or happiness that an individual derives from consuming a good or service. The theory assumes that individuals can rank their preferences for different goods and services and make choices that maximize their overall utility.

    The theory also assumes that individuals experience diminishing marginal utility, meaning that the more they consume of a particular good or service, the less additional satisfaction they receive from each additional unit consumed. As a result, individuals will allocate their resources in a way that maximizes their total utility, considering both the total amount of each good consumed and the marginal utility derived from consuming additional units.

    Overall, the elementary theory of utility provides a basic framework for understanding how individuals make choices and allocate resources based on their preferences and the satisfaction they derive from consuming goods and services.
    NUMBER 2:- Classical/Orthodox School:
    According to the classical/orthodox school, utility is seen as a subjective and unmeasurable concept. In other words, they believe that it is not possible to measure utility in any objective way. Therefore, the classical/orthodox school does not use the concept of utility in their economic analysis.
    Instead, this school focuses on the concept of value, which they define in terms of the labor that goes into producing a good or service. In this view, the value of a good is determined by the amount of labor that goes into producing it, and this value determines its price. Therefore, the classical/orthodox school believes that the price of a good or service is a more important factor in economic analysis than its utility.

    Neoclassical School:
    The neoclassical school, on the other hand, sees utility as a measurable and quantifiable concept. They believe that utility can be measured by observing individuals’ behavior in the market, such as their willingness to pay for a good or service. In this view, utility is a crucial concept in economic analysis because it helps to explain why individuals make certain choices.
    The neoclassical school also assumes that individuals make rational choices to maximize their utility. They assume that individuals have a set of preferences that they use to make decisions, and they allocate their resources in a way that maximizes their overall satisfaction or utility.

    In conclusion, the classical/orthodox school does not use the concept of utility in economic analysis, while the neoclassical school sees it as a crucial concept that helps explain individual behavior in the market. The neoclassical school also assumes that individuals make rational choices to maximize their utility, while the classical/orthodox school focuses more on the concept of value in determining the price of goods and services.
    NUMBER 3:- The demand for and pricing of productive factors, including labor, is a key aspect of microeconomics. The demand for labor refers to the quantity of labor that firms are willing to hire at different wage rates, while the pricing of labor refers to the determination of wages in the labor market.

    In general, the demand for labor is derived from the demand for the goods and services that labor is used to produce. As firms produce more goods and services, they require more labor to do so. The demand for labor is also affected by the productivity of labor, which is determined by factors such as technology, capital equipment, and the skills of the labor force.

    The pricing of labor is determined by the intersection of the demand and supply of labor in the labor market. If the demand for labor exceeds the supply, firms will be willing to pay higher wages to attract workers. Conversely, if the supply of labor exceeds the demand, wages will tend to be lower. In addition, factors such as the availability of substitute inputs (such as capital or automation) and government policies (such as minimum wage laws) can also affect the pricing of labor.

    It is important to note that the demand for labor can also be affected by non-price factors, such as changes in the level of economic activity, shifts in consumer preferences, and changes in technology. For example, if there is a shift towards more online shopping, this may increase the demand for workers in the e-commerce industry, while reducing the demand for workers in traditional retail stores.

    Overall, the demand for and pricing of labor in the labor market is influenced by a range of economic, social, and political factors. By understanding these factors, economists and policymakers can better analyze and manage the labor market to achieve desired economic outcomes such as full employment and higher standards of living for workers.

  197. EZEMA BERNADINE IFEBUCHE says:

    NAME: EZEMA BERNADINE IFEBUCHE
    REG NUMBER: 2021/243017
    FACULTY: FACULTY OF HEALTH SCIENCES
    DEPARTMENT: NURSING SCIENCES
    COURSE CODE: ECO 101 (ONLINE ASSIGNMENT)

    1,
    •Utility can be defined as the ability of a commodity or service to satisfy consumers 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. In other words, any commodity or service that possesses utility is useful to the consumer that used it.

    2,
    Cardinal school of thought and
    Ordinal school of thought.
    Explanations
    •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. Explain the demand for and pricing of productive factors emphasizing on the labour market.

    •When producing goods and services, businesses require labour and capital as inputs 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, 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 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 workers will pay for their time and skills.