A coastal community has always used the natural offshore wind for recreational sailing, with no restrictions or competing demands. A company proposes to construct a large-scale offshore wind farm in the area, which would reduce the wind quality for sailing.
Which statement best describes the economic status of the offshore wind in this scenario?
It remains a free good because wind is a naturally occurring resource with an unlimited physical supply in the atmosphere.
It transitions from a free good to an economic good because the competing uses introduce scarcity and an opportunity cost.
It remains an economic good because wind has always required capital investment in sailing boats to be utilized.
It transitions from an economic good to a public good because the wind farm provides electricity to the wider public.
53 exam-style questions on OCR A Level Economics The economic problem. Each one has a worked solution and a mark scheme showing where the marks go.