Question

Economists call things that are scarce economic goods. Things that are not scarce are called free goods. Once source of confusion is that some things that people don't pay for are actually scarce. Sort the following examples of water as a economic good or a free good:

A homeowner pays hundreds of dollars to fill a swimming pool

A homeowner pays $100 to sprinkle the lawn and garden during a dry summer

People have died from dyhydration in deserts

in many developed countries, water in rivers, streams, and ponds are contaminated

no one pays for a drink of water from a water fountain on campus

bottled water is more expensive per gallon than gasoline

there is a huge market for bottled water

many homeowners pay for water by the gallon

Answer 1

Water as an economic good:-

Boiled water is more expensive per gallon than gasoline

There is a huge market for boiled water

Many home owners pay for water by the gallon

A homeowner pays hundreds of dollars to fill the swimming pool

A homeowner pays $100 to sprinkle the lawn and garden during a dry summer

People have died from dehydration in dessert

Water as a free good:-

In many undeveloped countries, water in rivers, streams and pools is contaminated

No one pays for a drink of water from a water fountain on campus