Items such as cars, clothes, chocolates, which are directly sold to the consumers are :
Show answer & explanation
Correct answer: A
Explanation
The Correct answer is option 1 i.e. private goods
- A private good is a product that must be purchased to be consumed, and consumption by one individual prevents another individual from consuming it.
- In economics, all physical products can be classified into four types of goods:
- private goods
- public goods
- common resources
- club goods.
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Private goods are produced by privately owned businesses and are purchased to increase the buyer's satisfaction.
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The majority of goods and services consumed in a market economy are private goods.