A coastal town possesses a natural, unpolluted beach where clean sea air is abundant. The local council decides to use a portion of this beach to construct a public promenade that is free for all residents and tourists to access.
In economic theory, how are the clean sea air and the public promenade classified?
Both the clean sea air and the promenade are free goods because they can be consumed by the public at zero monetary cost at the point of use.
The clean sea air is a free good because its consumption involves zero opportunity cost, while the promenade is an economic good because its construction diverts scarce resources from alternative uses.
The clean sea air is an economic good because it is essential for human survival, while the promenade is a free good because it is supplied by the local council rather than the free market.
The clean sea air is a free good because it is provided by nature, while the promenade is a free good because its supply is infinite once constructed.
