Free goods are unlimited in supply

Steps:

• Recall that goods are classified by scarcity and consumption patterns in economics.
• Define economic good: requires scarce resources to produce.
• Define free good: naturally abundant, like air or sunlight, needing no production.
• Eliminate options that involve scarcity: merit and public goods both use resources.

Why B is correct:

• Free goods, by definition, are not scarce and do not consume resources since they exist in unlimited supply without human effort.

Why the others are wrong:

• A: Economic goods are scarce and require resources for production.
• C: Merit goods, like education, consume resources but are undervalued by consumers.
• D: Public goods, like national defense, consume scarce resources and are non-excludable.

Final answer: B