Amy is buying a new blouse for a party. What type of good is the blouse considered in economics?

• A. A capital good
• B. A free good
• C. A public good
• D. A consumer good

Answer: (D)

Verified step by step guidance

1. Step 1: Understand the classification of goods in economics. Goods are generally categorized into consumer goods, capital goods, public goods, and free goods based on their use and characteristics.
2. Step 2: Define a consumer good: it is a good that is purchased by individuals for personal use or consumption, rather than for producing other goods or services.
3. Step 3: Define a capital good: it is a good used by businesses to produce other goods or services, such as machinery or tools.
4. Step 4: Define a public good: it is a good that is non-excludable and non-rivalrous, meaning it is available to all and one person's use does not reduce availability to others (e.g., street lighting).
5. Step 5: Define a free good: it is a good that is abundant and available without cost, such as air or sunlight. Since Amy is buying a blouse for personal use, it fits the definition of a consumer good.