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Chapter 1: Problem 22

Can you think of any examples of free goods, that is, goods or services that are not scarce?

Short Answer

Expert verified
An example of a free good is clean air. Clean air is naturally abundant, requires no resources for production or distribution, and can be consumed in unlimited amounts without cost or constraint. Another example is sunshine, which is also abundant, requires no resources for production, and can be consumed by anyone without limitations. Both of these goods are not considered scarce.

Step by step solution

01

Understand Free Goods

To begin, let's define what free goods are. Free goods are goods or services that are available in abundant supply and do not require any scarce resources for their production or distribution. As a result, they can be consumed in unlimited amounts without any cost or constraint.
02

Provide an Example of a Free Good

One example of a free good is clean air. Clean air is naturally abundant and requires no resources to produce or distribute. Humans do not have to pay for air and can consume it without any limitation, as the supply is plentiful. This is an example of a good that is not scarce.
03

Provide Another Example of a Free Good

Another example of a free good is sunshine. Sunlight is available in abundant amounts and requires no resources for production. There is no cost associated with using sunlight, and it can be consumed without limitation by anyone who desires it. Just like clean air, sunshine is a good that is not scarce.

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