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Good

Good. Any thing that can satisfy human wants Examples: Rice, clothing, toys, <products> Concerts, movies, lessons, <services> Love, friendship, wind, view, scenery. Economic good. Its quantity is insufficient to satisfy our wants It has an opportunity cost of production

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Good

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  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.

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