ECONOMIC GOODS
ECONOMIC GOODS
An economic good is a desirable thing of which there is not enough to satisfy the desires of those who want it.
THREE CHARACTERISTICS OF AN ECONOMIC GOOD
1. Must give utility or satisfaction
– anything which is a nuisance or irritant does not give utility or satisfaction and so would not be considered an economic good.
2. Must be scarce in relation to demand
- otherwise people would not be willing to pay for it. If something is scarce, it can command a price. People would not be prepared to pay for something if there is plenty of it freely available.
3. Must be transferable
- if the good is not transferable, it would not be possible for one person to sell the good to another person.
A good must have ALL THREE characteristics to be considered an economic good.
Work in pairs to explain why the following goods ARE considered economic goods:
|[pic] |Beauty Treatments | |
|[pic] |Medicine | |
|[pic] |Grinds | |
|[pic] |Car | |
Work in pairs to explain why the following goods would NOT be considered economic goods:
|[pic] |Fresh Air in Ireland | |
|[pic] |Good Health | |
|[pic] |Intelligence | |
|[pic] |Swine Flu | |
|[pic] |Sand on a beach | |
................
................
In order to avoid copyright disputes, this page is only a partial summary.
To fulfill the demand for quickly locating and searching documents.
It is intelligent file search solution for home and business.
Related searches
- economic goods examples
- are all goods economic goods
- economic goods are
- economic goods and free goods
- free goods and economic goods
- economic and non economic goods
- both private goods and club goods are
- economic goods vs services
- economic growth and economic development
- economic goods and services examples
- economic goods are defined as
- american economic journal economic policy