The ordinalist approach of utility postulated that utility can be

Assessment: JAMB UTME - Economics - 2015 Subject: Economics

Question 1 Report

The ordinalist approach of utility postulated that utility can be
Answer Details
The ordinalist approach of utility suggests that utility can be ranked or ordered, but it cannot be measured in absolute terms. In other words, we can say that one option provides greater utility than another, but we cannot assign a specific numerical value to the utility itself. For example, suppose you are choosing between two different types of ice cream: vanilla and chocolate. The ordinalist approach suggests that you might prefer one flavor over the other, but it doesn't try to measure how much you like each flavor. Instead, it simply assumes that you can rank your preferences: you might like vanilla better than chocolate, or vice versa. This is different from the cardinalist approach, which suggests that utility can be measured in numerical terms (such as "utils" or "happiness units"). The ordinalist approach is often considered more realistic, because it acknowledges that people's preferences and satisfaction are subjective and difficult to measure in absolute terms.

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