Anonymous
Anonymous asked in 商業及金融其他 - 商業及金融 · 8 years ago

Question about Economic Goods

According to my reference book, 1.) economic good is good whose quantity

available is insufficient to satisfy all human wants for it. 2.) more of it is preferred.

3.) people are willing to pay for an additional unit of it. 4.) opportunity cost is

involved in providing/producing, obtaining and using it. Vice versa for free goods.

I agree with the point 1,2 and 3 but for point 4. I have a question. Take water in

a desert as an example, it is undoubtedly an economic good but why?

Although its quantity available is insufficient to satisfy all human wants for it, more

of it is preferred and people are willing to pay for it, there is no cost in producing it,

I mean it's a gift from mother nature, what is the cost and who should pay for the

cost? Does it mean that to determine whether a good is economic or not,

it is not necessary to fulfill all the 4 criteria? Thank you for your tremendous help!:)

2 Answers

Rating
  • 8 years ago
    Favorite Answer

    你自己第4點咪講咗

    4.) opportunity cost is involved in providing/producing, obtaining and using it

    opportunity cost 係講代價, 你用咗water in the desert去淋花, 咁咪冇得攞去飲囉, 咁咪有opportunity cost,

    air in the desert就冇, 因為你佢唔稀少, 你吸極都有, 但water in the desert係稀少, 用咗就冇

    textbooks係講seawater is the free good, 唔係fresh water,

    <there is no cost in producing it,

    I mean it's a gift from mother nature, what is the cost and who should pay for the

    cost? >

    呢段錯在把opportunity cost 和cost in producing混淆

  • 8 years ago

    yeah,it's not necessary to fulfill all the 4 criteria,and in yr example,where water in the desert is discussed.Right,you just simply think that in a desert,where it is dry and with very little water there.Everyone competes for more water and fulfill their wants,prevent loss of water and being thirsty.You say it right,water is a thing in mother nature,for example in our daily life,we have unlimited water .But in a case that water in a desert,it is an economic good as everyone wants it,and prefers more of it,but is still not sufficient to satisfy all people's wants,this is the definition of economic good.Hope I can help U!

    2013-08-21 15:09:23 補充:

    Hey,Ego.Why don't you consider answering the rest of my economic problems?

    -[經濟] Basic economics concepts(1)

    -[經濟] Basic Economic problems MC

    If you are interested ,just search for them and answer,thx!!!

    Capriece

Still have questions? Get your answers by asking now.