6 according to marginal utility model the body politic is he

6- according to marginal utility model, the body politic is healthy when is active true or false with explanation

Solution

Answer: False

Utility is a satisfaction level which could be measured.

Model: Marginal utility is the additional amount of satisfaction by consuming one additional unit. The model suggests that by consuming more and more units the marginal utility decreases. At the initial stage marginal utility is increasing, then it becomes constant, and lastly it becomes negative.

Example: Suppose a person is very thirsty but not getting water. If he gets it somehow, he will pay everything to get it; suppose he paid $1000 for his 1^st glass of water. The marginal utility for the 1^st glass is 1,000. Then he was offered the 2^nd glass when his thirsty becomes lower; on that time suppose he paid $600. The marginal utility for the 2^nd glass is (600 – 1,000 =) -400. Therefore, more he use the marginal utility would be less.

Body politic is the citizens of a country under a specified government. This could be healthy if those people are active or disease-free. It means one additional unit of activeness increases healthiness; the marginal utility may be either increasing or constant, but can never be negative. Therefore, the utility model is not followed here.