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Seawater, fresh air etc are regarded in economics as 
  • a)
    Giffen goods     
  • b)
    inferior goods    
  • c)
    free goods     
  • d)
    normal goods
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Seawater, fresh air etc are regarded in economics asa)Giffen goods b)...
Overview:
In economics, goods are categorized based on their characteristics and demand patterns. Seawater and fresh air are considered as free goods, also known as common goods or public goods. These goods have certain characteristics that differentiate them from other types of goods.

Explanation:

Free Goods:
Free goods are goods that are available in abundance and do not have a price attached to them. They are not scarce and can be consumed by anyone without reducing their availability to others. Seawater and fresh air are examples of free goods as they are naturally occurring resources that are available in abundance and can be used by anyone without any cost.

Characteristics of Free Goods:
- Abundance: Free goods are available in large quantities and are not limited in supply. Seawater and fresh air are constantly replenished by natural processes, ensuring their availability in abundance.
- Non-excludability: Free goods cannot be restricted or excluded from use by individuals. No one can prevent others from using seawater or fresh air.
- Non-rivalry: The consumption of free goods by one individual does not diminish the availability or quality of the goods for others. The use of seawater or fresh air by one person does not reduce its availability for others.

Other Goods:
In contrast to free goods, there are other types of goods with different characteristics:
- Giffen goods: Giffen goods are a rare phenomenon in economics where the demand for a product increases as its price rises. These goods are considered inferior goods.
- Inferior goods: Inferior goods are goods for which demand decreases as income increases. They are typically of lower quality or less desirable compared to other goods.
- Normal goods: Normal goods are goods for which demand increases as income increases. They are typically of higher quality or more desirable compared to inferior goods.

Conclusion:
Seawater and fresh air are classified as free goods in economics due to their abundance, non-excludability, and non-rivalry characteristics. They are available to everyone without any cost and can be consumed without reducing their availability for others. Understanding the categorization of goods helps economists analyze consumer behavior and market dynamics.
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Community Answer
Seawater, fresh air etc are regarded in economics asa)Giffen goods b)...
Seawater,fresh air etc are regarded as free goods in economics because these are the nature's gift as they doesnt need expense to create.
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Seawater, fresh air etc are regarded in economics asa)Giffen goods b)inferior goods c)free goods d)normal goodsCorrect answer is option 'C'. Can you explain this answer?
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