Question

What is an economic good?

• A. Anything that has money value. Anything that is scarce.
• B. Commercial and non-commercial goods.
• C. Resource Allocation.
• D. It actually means that the available quantity is not enough to satisfy our wants.

Answer 1

The correct option is A Anything that has money value. Anything that is scarce.

An economic good or service that has a benefit (utility) to society. An economic good have some degree of scarcity in relation to demand.

Three characterstics of economic good:

a) Must give utility or satisfaction.

b) Must be scarce in relation to demand.

c) Must be transferable.