ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Non-scarce objects are something people deal with daily, whether it be trash or items that are in abundance, but have no real value like pens or pencils.

Detailed explanation-2: -Air is a scarce good because it has alternative uses. Not all goods, however, confront us with such choices. A free good is one for which the choice of one use does not require that we give up another. One example of a free good is gravity.

Detailed explanation-3: -Things that are scarce, like gold, diamonds, or certain kinds of knowledge, are more valuable for being scarce because sellers of these goods and services can set higher prices.

Detailed explanation-4: -Any resources that are not scarce are called free goods. Wants are unlimited but the resources used to produce the goods and services to satisfy these wants are limited.