Owned by Oxford

Earlier this afternoon I had a little chat with David who's actually really a smart guy although you might see him slacking once in a while. You see, there's a reason Oxford accepted him with a requirement of a D in Chemistry.

See, my tutor provided us with a paradox in his tutorial, which 20 students couldn't answer.

HK : teehk.blogspot.com says (1:04 PM):
i've got an economical paradox for you
HK : teehk.blogspot.com says:
well say, it's perfect sense to think that with a rise in income, satisfaction and utility rises right?

david ng (&) says (1:05 PM):
... yeah?

HK : teehk.blogspot.com says:
however, in the long run, as proved by national studies, since 1950 income has practically doubled but satisfaction has only gone sideways (remained stagnant)

david ng (&) says:
assuming that at least one good with a positive price exists.

HK : teehk.blogspot.com says:
so.. any means on how this is achieved

david ng (&) says:
hm. inflation leh.
david ng (&) says:
that is money income

HK : teehk.blogspot.com says:
yea excluding inflation

david ng (&) says:
or?

HK : teehk.blogspot.com says:
well relative income

david ng (&) says:
hmm

HK : teehk.blogspot.com says:
of everyone in the system

david ng (&) says:
and the satisfaction is measured how? =p

HK : teehk.blogspot.com says:
assume, tastes remain the same, a rise in income e.g x2 = x2 the amount of everything bought
HK : teehk.blogspot.com says:
satisfaction is measured thru house to house surveys

david ng (&) says:
not necessarily =p
david ng (&) says:
and uh. satisfaction != utility

HK : teehk.blogspot.com says:
! =?

david ng (&) says:
not equal to
david ng (&) says:
! is not =p

HK : teehk.blogspot.com says:
oo
HK : teehk.blogspot.com says:
why isn't it
HK : teehk.blogspot.com says:
utility is the relative level of satisfaction gained from using something isn't it.. or so my tutor says

david ng (&) says:
... did your tutor ask you to find an answer to this? =p

HK : teehk.blogspot.com says:
nah, he gave us the answer
HK : teehk.blogspot.com says:
but i'm just asking u
HK : teehk.blogspot.com says:
hehe

david ng (&) says:
well
david ng (&) says:
I'd first point out that satisfaction surveys do not measure utility

HK : teehk.blogspot.com says:
welll he didn't quite say that i made it up myself

david ng (&) says:
and second
david ng (&) says:
that utility is relative, not absolute
david ng (&) says:
and third,

HK : teehk.blogspot.com says:
great u answered the question

Owned X.X

P.S: This is a very boring post to fill up my blogspace. Try your best not to read it. And if you do read it and fall asleep, don't blame me. At this point, you probably read it already anyway. Har Har.