Scale of preference shows

Step 1: Analyze the question The question asks what a "scale of preference" shows. This is a basic concept in the theory of choice and demand in Economics.

Step 2: Explain the concept Human wants are unlimited, but the resources to satisfy them (income, time, money) are limited. Because of this scarcity, a consumer cannot satisfy every want at once. So the consumer ranks wants from the most urgent to the least urgent. This ranked list is called the scale of preference.

The want at the top of the list is satisfied first, and the next one follows, depending on available resources. The opportunity cost is the next-best alternative given up when a choice is made. It comes from the scale of preference but is not what the scale itself shows.

Step 3: Evaluate each option

• A. Incomes of consumers in order of size. Wrong. The scale deals with wants, not incomes.
• B. Utilities enjoyed by consumers. Wrong. Utility is the satisfaction gained from consuming goods. The scale ranks wants before consumption, not satisfaction already enjoyed.
• C. Opportunity cost of goods consumed. Wrong. Opportunity cost is the next-best alternative forgone. It is a related idea, but it is not the definition of the scale.
• D. Consumer's wants in order of priority. Correct. This is exactly the definition: a list of a person's wants arranged in order of importance or urgency.

Step 4: Answer

Exam tip: Remember this link: Scale of preference → Ranking of wants → Choice → Opportunity cost. When you see "scale of preference," think "wants in order of priority." Opportunity cost is the item you give up after choosing, so it follows from the scale rather than being the scale.