What is the definition of an economic good?

An economic good is defined as a good that provides utility to consumers, meaning it fulfills a want or need and contributes to overall satisfaction. Utility refers to the usefulness or benefit derived from consuming a good. Economic goods are characterized by the fact that they are scarce, as opposed to free goods, which are not limited in supply. In this context, a good that gives utility is central to economic decision-making and resource allocation, as individuals and firms seek to maximize their satisfaction by choosing goods that provide the most utility within their budget constraints.

The other options do not capture the essence of an economic good. Abundance does not align with the definition, as economic goods are typically scarce. Likewise, a good that is free of cost does not necessarily provide utility or qualify as an economic good, and a good that cannot be transferred is not a common feature of economic goods, as many goods can change hands in the market. Thus, the focus on utility makes the first option the clear definition of an economic good.