ordinal approach to the theory of consumer behaviour is consumer's ability to rank his preference for various combination of products. It uses Indifference curve to analyse these preferences.
Law of diminishing.
The consumer has a small income.
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Rational Emotive Behavior Therapy - Abert Ellis
When discussing cardinal vs. ordinal, it is helpful to look at what the words mean. The distinguishing factor here is between cardinal and ordinal numbers. Cardinal numbers are 1, 2, 3; ordinal numbers, 1st, 2nd, 3rd. Some crucial differences follow from that. Whereas mathematical operations can be performed on cardinal numbers, they cannot be performed on ordinal numbers. Now, when talking about cardinal utility, it is an attempt to ''measure the utility of various alternatives. When talking about ordinal utility, it is the ''ranking of alternatives.'''' Cardinal utility is, however, an erroneous concept. It is impossible to "measure" utility. People can only say "I prefer A to B", but cannot meaningfully say "I prefer A 2.5 times more than B" or something to that effect. Furthermore, comparisons of utility between different individuals are impossible and meaningless, as well as between the same individual at different points in time (as individuals can and do change their preferences -- that is, ordinal value-scale rankings). Because value is subjective, we cannot measure it and cannot compare between two different people, or even between the same person at different times. To clarify, ordinal utility culminates in value-scales: 1st: A2nd: B3rd: C whereas cardinal utility is the erroneous attempt at measurement: 10utils -- A7utils -- B3utils -- COmar Tawfik.
what is mean by statistical approach and economical approach in the theory of index numbers?
The cardinal approach in a careful approach that states that utility is measurable. The ordinal approach disagrees with this theory.
they both obey the diminishing returns theory
Ordinal utility is a concept in economics that refers to the ranking of preferences among different alternative choices based on satisfaction or utility derived by an individual. It does not assign a specific numerical value to the level of satisfaction, but simply ranks the different choices in order of preference. This approach helps in understanding consumer behavior and decision-making without needing to quantify utility levels.
The consumer has a small income.
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Ordinalist assumptions in consumer behavior include that individuals can rank their preferences for goods and services in terms of satisfaction, that they make rational decisions based on these preferences, and that their utility can be compared and measured through ordinal rankings rather than exact numerical values. This theory focuses on the relative order of preferences rather than the absolute magnitude of utility.
The four approaches in the development of moral behavior are cognitive-developmental approach, social learning approach, personality approach, and evolutionary approach. These approaches focus on different aspects such as cognitive processes, social interactions, individual differences, and evolutionary origins in shaping moral behavior.
needs and motives, perceptions, attitudes, learning and self concept theory
Rational Emotive Behavior Therapy - Abert Ellis
Rational Emotive Behavior Therapy - Abert Ellis
Rational Emotive Behavior Therapy - Abert Ellis
Human behavior can be predicted because people make choices with a purpose about their actions. Behavior is chosen by individuals to reach certain goals.