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.