Definition of a Good in Economics

A good, in the context of economics, refers to a tangible product or item that is produced and consumed to satisfy human wants and needs. It is an economic term used to describe a physical object that can be bought, sold, and used for personal satisfaction or utility.

Explanation of the Correct Answer

The correct answer to the question is option 'A', which states that a good satisfies wants and needs. This answer is accurate because goods are specifically produced to fulfill the desires and requirements of individuals or society as a whole.

Elaboration of the Correct Answer

To further understand why the correct answer is option 'A', let's delve into the key characteristics of a good:

1. Human Wants and Needs
- Goods are created to meet the diverse range of human wants and needs. These wants and needs can vary from basic necessities like food, clothing, and shelter, to luxury items such as expensive cars or designer clothing.
- The production and consumption of goods are driven by the fundamental desire of individuals to satisfy their wants and needs.

2. Tangibility
- Goods are tangible objects that can be seen, touched, and physically possessed.
- For example, a smartphone, a pair of shoes, or a bag of groceries are all examples of goods that can be physically experienced and utilized.

3. Exchange Value
- Goods have exchange value, meaning they can be bought and sold in the marketplace.
- The value of a good is determined by factors such as supply and demand, production costs, and consumer preferences.

4. Durability
- Goods can possess varying degrees of durability. Some goods, like perishable food items, have a short lifespan, while others, like durable goods such as appliances or furniture, can last for years.

5. Production and Consumption
- Goods are produced through the utilization of resources and the application of labor and technology.
- Once produced, goods are made available for consumption by individuals or households. Consumption refers to the act of using or utilizing a good to satisfy wants and needs.

Conclusion

In conclusion, a good in economics refers to a tangible item that is produced and consumed to satisfy human wants and needs. It is an essential concept in the field of economics as it encompasses a wide range of products and items that individuals desire and utilize in their daily lives.