Problem 22 Can you think of any examples of... [FREE SOLUTION]

Chapter 1: Problem 22

Can you think of any examples of free goods, that is, goods or services that are not scarce?

Short Answer

Expert verified

Examples of free goods include air, sunlight, sea water, public parks, and radio broadcasts. These goods and services are not scarce, readily available without limit, and involve no cost to obtain or use.

Step by step solution

Example 1: Air

Air is a free good because it is abundantly available and does not have a cost associated with its consumption (unless in extreme circumstances like pollution, where some people may pay for air purifiers or bottled oxygen). People breathe air without any restriction or cost, making it a free good.

Example 2: Sunlight

Sunlight is another example of a free good because it is universally accessible and doesn't have any direct cost. People can utilize sunlight for various purposes, like heating, lighting, or growing plants without needing to pay for it.

Example 3: Sea Water

Sea water is a free good because it is widely available for anyone to access, regardless of their location. People can use sea water for activities such as swimming, fishing, and even desalinating it for drinking. However, the process of desalination might involve costs, but the actual resource itself remains free.

Example 4: Public Parks

Public parks are an example of a free service because they provide recreational spaces for members of the community without any cost. These parks are usually funded by public taxes or donations, but they are considered a free good because they provide value to the public without charging a fee for access.

Example 5: Radio Broadcasts

Radio broadcasts can be considered a free good as they are available to anyone with a radio or internet connection. While there might be some costs associated with purchasing a radio or maintaining an internet connection, the actual content of radio broadcasts themselves is usually free to the listener. These examples illustrate the concept of free goods or services that are not scarce and available for consumption without any cost.