Question

Which of the following are economic goods? Explain why cach is or is not an cconomic good. a. steaks b. houses c. cars d. garbage c. T-shirts

Short answer

a. Steaks b. Houses c. Cars d. Garbage e. T-shirts Answer: a. Steaks, b. Houses, c. Cars, and e. T-shirts are examples of economic goods because they have value, can be sold, and have a limited supply. They satisfy human wants and needs, such as food, shelter, transportation, and clothing. Garbage, on the other hand, is not considered an economic good because it does not hold value or can be sold, and it does not directly satisfy human wants and needs.

Step-by-step solution

Define Economic Good

An economic good is a product or service that has value, can be exchanged for other goods or services, and is subject to limited supply. It satisfies human wants and needs, which are the basis of all economic activity.

Analyze Each Option

a. Steaks: Steaks are an example of an economic good because they have value, can be sold, and have a limited supply. People are willing to pay for steaks to consume, which satisfies their wants and needs. b. Houses: Houses are also economic goods because they have value, can be sold, and have a limited supply. People need shelter, and are willing to pay for houses to provide them this service, therefore satisfying their wants and needs. c. Cars: Cars fall under the category of economic goods as well. They have value, can be sold, and face a limited supply. People require transportation, and cars are one way of satisfying this need. Thus, cars are an economic good. d. Garbage: Garbage is not considered an economic good. Although it is subject to limited supply, it does not hold value or can be sold. Additionally, garbage does not satisfy human wants and needs; rather, it is the byproduct of consuming other economic goods. e. T-shirts: T-shirts also are economic goods, as they have value, can be sold, and have limited supply. People need clothing, and T-shirts are an example of a product that fulfills that want or need.

Explain Why Cash is or is not an Economic Good

Cash is not considered an economic good, but rather a medium of exchange. It is used to facilitate transactions and trade of economic goods and services, but does not hold intrinsic value on its own. In other words, cash is valuable because it can be exchanged for economic goods and services, not because it satisfies a human want or need directly.