The correct answer is: B. goods, other than free goods, whose use directly satisfies consumer’s wants.
Consumer goods are goods that are purchased by consumers for their own use and enjoyment. They are not used in the production of other goods or services. Examples of consumer goods include food, clothing, furniture, and appliances.
Free goods are goods that are available to everyone without charge. Examples of free goods include air, water, and sunlight.
Capital goods are goods that are used in the production of other goods or services. Examples of capital goods include machines, tools, and buildings.
Intermediate goods are goods that are used in the production of other goods or services. Examples of intermediate goods include raw materials, components, and semi-finished goods.
Here is a brief explanation of each option:
- Option A is incorrect because consumer goods can be produced in a variety of economic systems, not just free markets.
- Option B is correct because consumer goods are goods that are used by consumers to satisfy their wants.
- Option C is incorrect because consumer goods are not produced by consumers, they are produced by businesses.
- Option D is incorrect because consumer goods are not used by consumers in order to earn their living.