Which value characteristic describes usefulness or practicality to satisfy wants or needs?

• A. Scarcity
• B. Utility
• C. Purchasing Power
• D. Desire

Answer: (B)

Utility is the usefulness or practicality of a good or service in satisfying a want or need. In value terms, utility captures how well something serves the intended purpose for a person. For example, a chair provides seating and support, so its utility lies in how effectively it meets the need to sit. Utility can vary by person and situation, which is why different buyers may value the same item differently. Scarcity describes limited resources, not usefulness. Purchasing power is about how much money one has to buy goods, not how useful the goods are. Desire is the wish for something, but it doesn’t measure practical usefulness. So, the value characteristic that describes usefulness or practicality is utility.