Explain economic and non-economic goods. – InterviewSolution

1.

Explain economic and non-economic goods.

Answer»

Economic goods and non-economic goods:
(a) Economic goods:

Goods which have an exchange value in the market are called economic goods.
Such goods command an exchange value since they are scarce in supply compared to their demand. Moreover their supply can be controlled.
Example: All goods such as metal, sugar, electronics, books, etc.

(b) Non-economic goods:

Goods which do not have exchange value are called non-economic goods. Such goods are abundant in supply.
Though these goods are consumed by people they do not pass through the economic process of production and distribution.
Example: Sunlight and air.

Discussion

No Comment Found

Related InterviewSolutions