Which of the following best describes goods in economics?

• A. Resources used in the production process
• B. Money used to purchase products
• C. Physical items that satisfy human wants and can be bought or sold
• D. Services provided by the government for free

Answer: (C)

Verified step by step guidance

1. Understand the definition of 'goods' in economics: Goods are tangible physical items that satisfy human wants and needs.
2. Differentiate goods from resources: Resources (or factors of production) are inputs like labor, land, and capital used to produce goods and services, not goods themselves.
3. Recognize that money is a medium of exchange, not a good; it facilitates buying and selling but is not a physical item that satisfies wants.
4. Identify that services are intangible activities or benefits provided, often without physical form, and thus differ from goods.
5. Conclude that the best description of goods is 'Physical items that satisfy human wants and can be bought or sold' because this captures their tangible nature and economic role.