The ordinalist approach of utility postulated that utility can be

Step 1: Analyze the question The question asks what the ordinalist approach says about utility. The options are "Rank," "Measurable," "Rise," and "Fall." The original JAMB wording is likely "utility can be ranked," and option A ("Rank") is the closest fit.

Step 2: Explain the concept There are two main approaches to measuring consumer satisfaction (utility):

• Cardinalist approach (Marshall): Utility can be measured in numbers, called "utils." For example, a plate of rice gives 10 utils and a plate of beans gives 6 utils.
• Ordinalist approach (Hicks and Allen): Utility cannot be measured exactly in numbers, but a consumer can rank (order) their preferences. For example, "I prefer rice to beans, and beans to yam." We know the order (1st, 2nd, 3rd) but not by how much one is preferred over another.

Ordinal numbers (1st, 2nd, 3rd) describe position or rank, which is where the name "ordinalist" comes from. The tool used in this approach is the indifference curve.

Step 3: Work through the options

• A. Rank: Correct. Ordinalists say preferences can be ordered or ranked.
• B. Measurable: This is the cardinalist view. Ordinalists say utility cannot be measured precisely.
• C. Rise: Not relevant to the approach.
• D. Fall: Not relevant to the approach.

Step 4: Answer The ordinalist approach says utility can be ranked (placed in order of preference), not measured exactly.

Exam tip: Remember "Ordinal = Order." Ordinalists order or rank preferences, while Cardinalists Count utility in numbers. If you see "measurable" or "utils," think cardinal. If you see "rank," "order," or "indifference curve," think ordinal.