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 or services, which are not scarce, include air, sunlight, ocean water, public parks, and rainwater. These resources are available in abundance and do not have a price, making them accessible to everyone. However, their availability might vary depending on factors like location and human-made constraints.

Step by step solution

Example 1: Air

Air is a free good since it is available in abundance and does not have a price. People do not have to pay for the air they inhale, and it is considered non-excludable, as no one can be prevented from using it. However, air quality can become scarce in highly polluted areas, but air itself is still considered a free good.

Example 2: Sunlight

Sunlight is another example of a free good, as it is available in abundance and does not have a price. Sunlight is a natural resource that is available to everyone, and no one can prevent others from using it. Moreover, sunlight has many uses, such as providing light and warmth, and it plays a crucial role in photosynthesis.

Example 3: Ocean Water

Ocean water can be considered a free good because it is available in vast amounts and does not have a price. Anyone can have access to the ocean as a source of water for various recreational activities such as swimming or surfing. However, the ocean's water requires treatment and purification for consumption and other uses, and in this sense, it can become scarce. But as a natural resource, it is abundant and available for use.

Example 4: Public Parks

Public parks can be seen as a free good or service as they are available for everyone to use without having to pay a price. Parks offer recreational spaces and facilities for various activities and events. They are primarily funded by the government and maintained for the benefit of the general public.

Example 5: Rainwater

Rainwater is an example of a free good, as it is available in abundance and does not have a price. Rainwater can be collected, stored, and used for various purposes, such as irrigation, gardening, or even as a source of water for consumption after purification. This allows individuals and societies to access a valuable resource without direct costs associated with its collection. These examples illustrate that free goods and services still exist in the world today. They are resources available in abundance that do not have a price and can be utilized by everyone. However, it is essential to consider that the availability of these free goods and services may vary depending on various factors such as location, environment, and human-made constraints.