DECA Sports and Entertainment Marketing Practice Exam

What does the term 'economic utility' refer to?

1. The potential profit from a product

2. The cost of producing goods

3. The satisfaction a consumer receives from consumption

4. The demand for a service in the market

The correct answer is: The satisfaction a consumer receives from consumption

The term 'economic utility' relates to the satisfaction or benefit a consumer derives from the consumption of a product or service. This concept encompasses various forms of utility including form, place, time, and possession, which all contribute to how much value consumers perceive in a product or service. When consumers make decisions, they often evaluate the perceived utility they will receive in relation to the cost and their needs or wants. By understanding economic utility, businesses can more effectively tailor their products and marketing strategies to meet consumer demands and enhance the value offered. Thus, choice C accurately captures this definition of economic utility as it closely ties to consumer satisfaction, which is a fundamental aspect of consumer behavior in economics. The other options do not align with the concept of economic utility; one focuses on potential profits, an aspect of business operations rather than consumer perspective, while another addresses production costs, which is about supply rather than consumer satisfaction. The demand for a service in the market reflects market dynamics but does not specifically convey the personal satisfaction derived from consumption.