Good Any thing that can satisfy human wants Examples: Rice, clothing, toys, Concerts, movies, lessons, Love, friendship, wind, view, scenery

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

Economic good Examples: Fruits Education

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.

Examples of free goods Air Sunshine Rainfall Sea water

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

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

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

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

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.