Nature of Goods

GOODS, according to the ‘Austrian School of Economics’, require the following:

1. Human Need

2. Causal connection between the good and a need satisfaction

3. Human knowledge of that causal connection

4. Require complementary goods

‘Principles of Economics’, by Carl Menger:

It has been shown that the existence of human needs is one of the essential prerequisites of goods-character, and that if the human needs with whose satisfaction a thing may be brought into causal connection completely disappear, the goods-character of the thing is immediately lost unless new needs for it arise.