GTLE Economics Practice Questions - Ghana Teacher Licensure Examination Subject Specialism Economics Exam

Cardinal theory assumes utility can be measured in exact numerical values, while ordinal theory assumes utility can only be ranked. Cardinal theory applies only to luxury goods, whereas ordinal theory applies to normal goods. Cardinal theory assumes diminishing marginal utility does not occur, while ordinal theory assumes it does. Ordinal theory uses budget lines, while cardinal theory uses indifference curves.