GOODS THAT ARE USEFUL, SCARCE AND CAN COMMAND PRICE ARE CALLED

• A. capital goods
• B. consumer goods
• C. economic goods ✓
• D. free goods
• E. scarce goods

The answer to the question is: C. economic goods

Economic goods are goods that are useful, scarce, and can command a price in the market. These goods are limited in supply relative to demand, leading to their scarcity and the ability to command a price. Economic goods are contrasted with free goods, which are abundant and do not command a price.

Characteristics of Economic Goods:

1. Usefulness: Economic goods provide utility or satisfaction to individuals.
2. Scarcity: Economic goods are limited in supply relative to demand, leading to their scarcity.
3. Price: Economic goods can command a price in the market due to their scarcity and usefulness.

Examples of Economic Goods:

1. Food: Food is essential for survival, and its scarcity can lead to it commanding a price in the market.
2. Clothing: Clothing is necessary for protection and comfort, and quality clothing items can be scarce and command a price.
3. Housing: Shelter is a basic human need, and the scarcity of quality housing can lead to it being an economic good.

In conclusion, economic goods are goods that possess utility, are scarce, and can command a price in the market due to their limited availability relative to demand.