Free Goods

Free goods are natural resources that exist in unlimited supply, or at least in quantities sufficient to meet human needs entirely. They are accessible to everyone. Since free goods are not scarce, they have no positive price and cannot be classified as economic goods.

Examples of free goods include air and sunlight. These resources are available to everyone without the need for trade. On Earth, air is free and accessible to all, even though its quality may vary, and there is no charge for using it. Similarly, sunlight shines on all parts of the globe without cost.

The idea of a "free good" is not inherent to the good itself; it depends on whether the resource is scarce and accessible. For instance, air is normally a free good because it is abundant and available at no cost. However, in situations like scuba diving, air requires specific equipment such as tanks, making it subject to scarcity and cost. This highlights how a good’s classification as "free" depends on the economic, technological, and social context in which it is used.

How Free Goods Differ from Economic Goods

Free goods are defined solely by their utility, meaning their ability to fulfill a specific human need. They lack scarcity entirely. As a result, while free goods belong to the broader category of goods, they are not considered economic goods. Without a price, free goods are often contrasted with economic goods.