The Utility term in the Economic theory The Utility has an important role in the economic theory, and every first year student studying introduction to microeconomics deals with it. The main idea is the following: the economic world is divided into two main sectors: the firms which produces goods and services, and the consumers which consumes them. Of course, the consumers on the second side are the workers of the firms on the first side, and thus they produce the goods and the service they consume, and pay for them (as consumers) with the money they earned (as workers). The goal of the firms is to maximize their profit: as much revenue as possible combined with less expanses as possible, results in the highest possible profit. One may argue and say that profit and money are just a mean (and that is true); however the role of the firms is to create profit. What is the goal of the consumers? Why do they consume goods and services? The "thing" they get from it is described as "Utility", and the consumers objective is to get as much utility as possible. Given that a consumer has a limited amount of money, he will consume it in a way that will enable him to get as much "utility" as possible. The notion of the utility, yields discussions and conclusions like the following: * The reason why water (vital material) is cheaper than diamond (nice to have). * The reason why we gamble, though in average we win less than what we pay. - The existence of the demand curve, and the reason why we buy (and even spend) more when the price is reduced. * The way we divide our time between working (in order to get as much money as posible) and consuming (in order the get as much utility as possible). * Last but not least: why do we work? (spoiler: not in order to earn money but in order to spend money..). All those discussions applies of course to the rational economical behavior of the consumers, though many aspects of the human behavior is not (and not supposed to be) rational or economical.