2.1 What are Goods? What is bad？ In Economics, goods are the things which can satisfy people’s wants. What is bad？

Are these free of charge Halloween tickets free goods?

What is free good? Free goods are goods of which their quantities are enough to satisfy all people's wants for them. People do not want more of them. No one is willing to pay for free goods.

New Terms Quantity supplied: Number of goods provided.

New Terms Enough

New Terms Satisfy YEAH!! My want is satisfied. I want to have 2 cans of coke

New Terms Satisfy I want to have 10 cans of coke OH!!! I want more of it. I am not satisfied. I want to have 10 cans of coke

What is free good? Free goods are goods of which their quantities are enough to satisfy all people's wants for them. People do not want more of them. No one is willing to pay for free goods.

Quiz Time!

Are these daily newspaper free goods?

Are these newspaper free goods? Are the quantity supplied enough to satisfy human wants? Do we prefer to have more?

Are these newspaper free goods? Are the quantity supplied enough to satisfy human wants? Do we prefer to have more? Free goods are goods of which their quantities are enough to satisfy all people's wants for them. People do not want more of them.

Are these daily newspaper free goods? Are the quantity available enough to satisfy human wants? Free daily newspaper are not enough to satisfy all our wants

Are these daily newspaper free goods? 2. Do we prefer to more?

Are these free daily newspaper free goods? 2. Do we prefer to more? More of it is preferred. Conclusion： Free daily newspapers are not free goods.

Are these free daily newspaper free goods? (Yes / No), they (are/aren’t) free goods because_________________________ _______________________________ __________________________________. their quantity supplied are not enough to satisfy all our wants. More of it is preferred.

Is this ticket a free goods? Free Day time admission Is this ticket a free goods? Hong Kong residents simply present the Hong Kong identity documents or Hong Kong Birth Certificate to enjoy free day time admission on your birthday. 

Is this ticket a free good? Free Day time admission Is this ticket a free good? Is the quantity supplied enough to satisfy all our wants? Quantity supplied is not enough to satisfy all our wants. More of it is preferred. 2. Do we prefer to have more? It is not a free good.

Is this ticket a free good? Free Day time admission Is this ticket a free good? (Yes / No), it (is/isn’t) a free good because __________________________________ __________________________________. its quantity supplied is not enough to satisfy all our wants. More of it is preferred.

Are there any free lunch?

Economist: Milton Friedman There's no such thing as a free lunch Economist: Milton Friedman

What is Economic Good? Economic goods are goods of which their quantities are not enough to satisfy all people's wants for them. People want more of them. People are willing to pay for economic goods.

The features of Economics Goods: People have to give up something to get Economic Goods, so there is an opportunity cost when getting Economic Goods. Producing Economic Goods needs scarce resources, meaning people give up resources that can produce other goods so as to produce Economic Goods.

The features of Economics Goods: People want more Economic Goods, and are willing to pay for them, so Economic Goods normally have prices. Caution: Free-of-charge goods (e.g. free distributed newspaper) are Economic Goods

How to distinguish economics goods from free goods? 利息與 How to distinguish economics goods from free goods? Quantity supplied V.S. Wants Does Opportunity Cost involve in production?

Goods Economic Good Free Good Point 1 : Quantity supplied V.S. Wants Quantity supplied is not enough to satisfy all our wants. More of it is preferred. Quantity supplied is enough to satisfy all our wants. More of it is not preferred.

May / may not have a price Goods Economic Good Free Good Point 2: Opportunity Cost involved in production? Producing them involves Opportunity Cost. The resources used to produce them have other usages. Producing them involves no Opportunity Cost. The resources used to produce them have no other usages.   Other Point： Price May / may not have a price Free of charge / zero price

        Exercise 2.1 Economic Goods Free Goods   Economic Goods Free Goods a) Sun Shine in summer b) Distilled water in the distilled water machine c) Gift stamps of a supermarket d) Free daily newspaper e) Library books f) The air in the atmosphere g) The air in space h) The free shuttle bus service provided by a large shopping mall        

Exercise 2.2 練習一 The above goods are all Economic Goods. Because these goods' quantity supplied_____________________________________, people want more of them. OR Producing them involves Opportunity Cost, __________________________________. Are not enough to satisfy all our wants limited resources have other use.

2. In June, 2010, Moscow suffers from very serious air pollution because of the effects of a fire. In this situation, is fresh and clean air free goods? Fresh and clean air is not free good because The quantity supplied is not enough to satisfy all our wants, More of it is preferred. Caution： We focus on whether the goods “enough / not enough” to satisfy our wants instead of “can / can not”

3. Please explain whether the following sentences are correct or not, and put a “” in the correct boxes.   Sentences Correct Wrong a. Goods without any charges are Free Good. b. The market price of Economic Goods must be more than zero.  Not all free-of-charge goods are free goods. They can be economic goods.  Free-of-charge goods can be economic goods.

3. Please explain whether the following sentences are correct or not, and put a “” in the correct boxes.   Sentences Correct Wrong c. Only Economic Goods can satisfy people’s wants.  Free goods can also satisfy all our wants. They are just more than what we preferred.

Economic good/ Free good Please identify whether the following good is free good or economic good. Goods Economic good/ Free good Freely distributed tissue b) Halloween ticket c) Water in the sea d) Free trial contact lens e) Sunshine in supply Economic Good Economic Good Free Good Economic Good Economic Good

(b) Are complementary toothpaste free goods? (Yes/No)，_____________________________ ______________________________________________________________________________ the quantity supplied is not enough to satisfy all our wants, more of it is preferred.

(c) A drought is an extended period of months or years when a region notes a deficiency in its water supply. Is sunshine a free good in this region?

(c) A drought is an extended period of months or years when a region notes a deficiency in its water supply. Is sunshine a free good in this region? (Yes/No)，Sunshine is ___________________ _______________________________________ enough to satisfy all of their wants, more of it is not preferred.