Econ MC問題,[HELP]

10.)The main difference between free goods and econmic goods is ..

Answer:

A.) econmic goods can satisfy human wants but free goods cannot.
A) is not correct because both economic goods and free goods can satisfy human wants.

B.) econmic goods usually have a market price but free goods are always free of charge.
B) is correct because economic goods usually have a market price for trading purposes for merchants to make profit, but free goods, as they are so named, are free of charge.

C.) the quantity of econmic goods is larger than that of free goods.
C) is not correct because the quantity of economic goods can be larger or smaller than that of free goods.
D.) humans have more wants for econmic goods than for free goods.
D) is not correct because humans can have more or less wants for economic goods than for free goods.
I hope I can help you.


2007-09-27 10:57:30 補充：
幫到你嗎?

I agree with the above answer~ Just a little to add:
A) False. Goods, no matter economic or free goods, can satisfy human wants. Just that free good is sufficient to satisfy all our wants that we does not need further more of it.
B) True. Economic good is insufficient to satisfy all our wants, so we are willing to pay opportunity cost for it, which can be market price or non-money cost (such as time spent for queuing). So it is correct to say that econmic goods USUALLY have a market price.
Our wants for free good is fully satisfied by available resources, so we do not need, and are not willing, to further pay an opportunity cost for free good. So free good has no market price, and is free-of-charge. Note that free good MUST BE free-of-charge, but free-of-charge good MAY NOT be free good.
C) False. Economic and free goods are defined in terms of their quantity compared to quantity demanded for themsevles (at zero cost). There is no comparison in quantity available between economic and free good.
D) False. Economic and free goods are defined in terms of their quantity compared to quantity demanded for themsevles (at zero cost). There is no comparison in quantity demaned (at zero cost) between economic and free good.