Which of the following is an example of free good?

Step 1: Analyze the question The question asks which option is a free good in the economic sense. Note that "free" here does not mean "given without payment." It has a specific meaning in Economics.

Step 2: The concept A free good is a good that is:

• Available in unlimited supply relative to demand (no scarcity)
• Has no opportunity cost to produce or obtain
• Provided by nature, with no one needing to pay for it

Examples: air, sunlight, rainwater, and water in the ocean.

An economic good is scarce, takes resources to produce, and has an opportunity cost, even if someone else pays for it.

Step 3: Check each option

• A. Free education: It costs nothing to the student, but the government pays for teachers, buildings, and materials. Resources were used, so it is an economic good, not a free good.
• B. Water in the ocean: It is provided by nature, abundant, and needs no resources to produce. This is a free good.
• C. Dinner you did not pay for: Someone paid for the ingredients, cooking, and effort. It is an economic good, only free to you personally.
• D. Your rented apartment: You pay rent, and it took resources to build. It is clearly an economic good.

Step 4: Answer The correct option is B. Water in the ocean.

Exam tip: Do not be fooled by the word "free." Ask yourself, "Did anyone have to spend resources to provide this?" If yes, it is an economic good. If it comes purely from nature in unlimited supply (air, sunshine, ocean water), it is a free good.