O Levels Economics (2281)•2281/12/M/J/22

Explanation
Free goods are unlimited natural resources available without production cost or scarcity.
Steps:
- Define free good as a resource abundant in nature, not scarce, and requiring no human effort to obtain.
- Assess each option for scarcity and cost: defence, education, and health services involve production and payment; sunshine does not.
- Eliminate options needing resources or labor, leaving natural phenomena.
- Confirm sunshine fits as it's freely available from the sun without limits or cost.
Why D is correct:
- Sunshine is a classic free good per economic definition, as it's naturally unlimited and accessible without production or rivalry.
Why the others are wrong:
- A: Defence is a public good provided by governments, involving costs and scarcity of resources.
- B: Education requires teachers, facilities, and funding, making it scarce and costly.
- C: Health services demand medical expertise and infrastructure, leading to high costs and limited supply.
Final answer: D
Topic: Opportunity cost
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