Cardinal and Ordinal Approach in Urdu/Hindi

This video lecture compare the cardinal and ordinal approach. Cardinal utility is an important concept in utilitarianism and neo-classical economics. first time Daniel Bernoulli gave the concept of utility in 1738.
Jeremy Bentham talked about utility as pleasure and minimising pain.

William Stanley Jevons, Léon Walras, and Alfred Marshall all developed concepts of utility, usually linked to market prices. However, proving exact measurement of utility proved elusive. The two theories of cardinal approch is the law of diminishing marginal utility and equi marginal utility.

In ordinal utility, the consumer only ranks choices in terms of preference but we do not give exact numerical figures for utility.

For example, we prefer a BMW car to a Nissan car, but we don’t say by how much.

It is argued this is more relevant in the real world. When deciding where to go for lunch, we may just decide I prefer an Italian restaurant to Chinese. We don’t calculate the exact levels of utility.

Carl Menger, an Austrian economist, developed concepts of utility which rested on ranked preferences.

In 1906 Vilfredo Pareto in 1906 concentrated on an indifference curve map. This placed preferences on bundles of goods but did not attempt to say how much.