Free Goods and Economic Goods

What is the meaning of a free good and an economic good?

In Economics, free goods differ greatly from economic goods in the sense that one is free and unlimited in supply whereas the other is not free and limited in supply.

What is a free good?

A free good is any good that is unlimited in supply or is in great abundance. These goods as the name suggests are normally obtained free. You do not have to pay money or sacrifice any material thing 2in order to obtain free goods. Examples of freed goods include air, sunlight, water, etc.

What are economic goods?

Economic goods are goods that cannot be obtained for free. You have to pay for economic goods before you can get access to them or use them. They are normally scarce goods or limited in supply as compared to free goods. In order to obtain an economic good, you have to lose something – especially money.

 Examples of economic goods include the following: books, cars, computers, houses, clothes, services, mobile phones, furniture, etc.