Question

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

Short answer

Air, sunshine, and seawater are examples of free goods, as they are abundant and available without any limit or cost. However, there can be limitations to their availability, such as air pollution, seasonal changes in sunlight, and the need for desalination of seawater. In such cases, these goods may no longer be considered "free."

Step-by-step solution

1. Identifying Free Goods

To identify free goods, we should look for items or services that are ubiquitous and available without any restrictions or costs. These goods will not be scarce, meaning there is an abundance of them, and no one needs to pay for them.

2. Examples of Free Goods

Here are a few examples of free goods: a) Air: Air is a free good as it is abundant and available without any limit or cost. People do not pay for the air they breathe, and it is readily available everywhere. Air only becomes a scarce resource in specific situations, such as in polluted areas or in space, where clean air is limited. b) Sunshine: Sunshine is also a free good as it is available without any cost and is abundant in most parts of the world. People do not pay for sunlight and can enjoy its benefits (such as providing light and warmth) for free. However, sunshine may become scarce in specific locations or times of the year (e.g., in extreme latitudes or during the winter months). c) Seawater: Seawater is another example of a free good, especially for those living near the coast. It is abundant and available without any cost. However, turning seawater into potable water (through desalination) requires resources and monetary investment, at which point water becomes a scarce good.

3. Understanding the Limitations of Free Goods

While free goods are abundant and available without cost, these goods can still have limitations and may not always remain free. For example, clean air can become scarce in areas with high pollution levels, and sunlight can be limited during specific seasons or geographic locations. In these cases, the goods may no longer be considered "free" and may require resources, technology, or money to access.