CAIE A-Level Economics 1.6.1 Free and Private Goods

CAIE A-Level Economics 1.6.1 Free and Private Goods
Cambridge International AS & A Level Economics 9708 syllabus for exams in 2026, 2027 and 20282026–2028

Practise distinguishing free goods from scarce private economic goods using resource cost, rivalry and excludability rather than whether the user pays at the point of use.

How this is tested

  • classify a free good only when its consumption uses no scarce resources and has no opportunity cost
  • recognise tax-funded or gifted food and healthcare as economic goods despite zero user price
  • use rivalry and excludability to explain why an overcrowded charged beach is a private good

Question 3(a)

[Maximum number: 8]

With the help of examples, explain the nature and characteristics of free goods and private goods (economic goods) and consider the significance of the distinction between these two types of good.