1 / 10

Understanding Economic Goods: A Comprehensive Guide

Dive into the world of economic goods with this comprehensive guide. Learn the difference between economic goods and free goods, explore examples, and understand the concepts of consumer and capital goods. Enhance your knowledge of goods and their impact on our wants and needs.

meliora-terris
Download Presentation

Understanding Economic Goods: A Comprehensive Guide

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Good • Any thing that can satisfy human wants • Examples: • Rice, clothing, toys, <products> • Concerts, movies, lessons, <services> • Love, friendship, wind, view, scenery

  2. Economic good • Its quantity is insufficient to satisfy our wants • It has an opportunity cost of production • More is preferred to less • It has a price

  3. Economic good • Examples: • Fruits • Education

  4. Free good • Its quantity available is not sufficient to satisfy our wants. • It does not have an opportunity of production. • More is NOT preferred to less. • It does not have a price.

  5. Examples of free goods • Air • Sunshine • Rainfall • Sea water

  6. Think • State one good that is either an economic good or a free good under different situation. • Ice: • Economic good when used in a restaurant. • Reasons: • Free good when it is found in North Pole

  7. Is free lunch a free good? • No, it is an economic good. • Reasons?insufficient to satisfy all our wants; • It is produced from scarce resources that have alternative uses • Other examples, • Free newspapers, gifts, free education

  8. Consumer good • A good that is used by consumers to satisfy their wants. • Examples: magazine, car, movies, mobile phone, computer, TV sets

  9. Capital good • A good that is used by producers for production of other goods. • Examples: • Refrigerator, microwave oven, lorry, ….used in production units.

  10. Think • A good can be classified as a consumer or a capital good depending on how it is used. • A computer used by a student at home is a consumer good. • The same computer used by a teacher in the staff room is a capital good.

More Related