Question

Explain why car is an economic good.

Answer 1

An economic good is a good or service that has a benefit (utility) to society. Also, economic goods have a degree of scarcity and therefore an opportunity cost. An economic good will have some degree of scarcity in relation to demand. It is the scarcity that creates a value people become willing to pay for.

Answer 2

Answer:

An economic good is a good or service that has a benefit (utility) to society. Also, economic goods have a degree of scarcity and therefore an opportunity cost. ... An economic good will have some degree of scarcity in relation to demand. It is the scarcity that creates a value people become willing to pay for.