Which of the following is an example of free good?
ECONOMICS
JAMB 2023
Which of the following is an example of free good?
- A. Free education
- B. Water in the ocean
- C. Dinner you did not pay for
- D. Your rented apartment
Correct Answer: B. Water in the ocean
Explanation
Free goods are goods whether consumer goods or productive inputs, which are useful but not scarce i.e. they are in sufficiently abundant supply that all agents can have as much of them as they wish at zero social opportunity cost e.g. air, water, by -product etc.
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