If people willingly give up something (such as money) for a good, then the good is
A) not an economic good.
B) scarce.
C) available in an unlimited supply.
D) a luxury good.

Question

Quizplus · Accepted Answer

The fact that people willingly give up something (money) for the good indicates that it is scarce and has value. Economic goods are defined as goods that are scarce and have value, so the good in question is an economic good. Choice A is incorrect because we have established that the good is an economic good, and luxury goods are a subset of economic goods that are considered non-essential or discretionary purchases, so choice D is also incorrect. Choice C is incorrect because an unlimited supply would indicate that the good is not scarce, which contradicts the given information that people are willing to give up something for it.

If People Willingly Give Up Something (Such as Money) for a Good