Cognitive Abilities Test (CAT4) Practice Exam

Utility in decision-making fundamentally relates to the idea of achieving outcomes that align with an individual's goals and preferences. When making decisions, individuals assess various alternatives based on how well those choices will help them fulfill their objectives, be they personal, financial, or otherwise. This concept acknowledges that different people have different priorities and values, and thus what is considered "utility" can vary significantly from person to person.

While maximizing happiness, minimizing costs, and ensuring fairness are all important aspects of decision-making, they are subsets of the broader idea of achieving a desired outcome. For instance, maximizing happiness might be one person's goal, while another might focus on minimizing costs or ensuring fairness in their decisions. However, the core of utility lies in how well the chosen outcome meets a person's specific goals, making it the most accurate answer.