Types of Economic Goods
What are economic goods?
What distinguishes economic goods from other types of goods? Which of the following is an example of a good?
a) a manicure
b) a car warranty
c) a dental examination
d) a visit to the dog groomer
e) a delivery van
Answer:
In economic terms, a good is a physical item that is bought and sold. Among the options provided, a delivery van constitutes a good as it is a tangible item. The remaining options, i.e., a manicure, a car warranty, a dental examination, and a visit to the dog groomer represent services, not goods.
Explanation:
In the context of economics, a good is typically a physical item that can be bought and sold. Therefore, among the options given, the example of a good would be a delivery van. A manicure, a car warranty, a dental examination, and a visit to the dog groomer all represent services, not physical goods. Services involve providing a task or labor, whereas goods involve an exchange of physical items for money.