Economics: Principles, Problems, and Policies, 19th Edition

Published by McGraw-Hill Education
ISBN 10: 0073511447
ISBN 13: 978-0-07351-144-3

Chapter 1 - Limits, Alternatives, and Choices - Questions: 3

Answer

Utility is the pleasure, happiness, or satisfaction obtained from consuming a good or service. This relates to purposeful behavior because consumers act in a purposeful manner to ensure they maximize satisfaction or utility. Weighing the cost and benefit of their decision is purposeful and done so to ensure that their utility is increased to a reasonable level.

Work Step by Step

Human behavior is focused on self interest. Seeing as utility is the maximization of a human's happiness, pleasure, or satisfaction it would make sense that humans act in a purposeful manner to increase their own happiness.
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