Understanding Needs and Wants

Why is it important to understand the differences between needs and wants?

• It helps in understanding how they relate to business

• It improves mathematical skills

• It enhances artistic abilities

• It develops scientific knowledge

What are needs?

• Items required to help us have fun

• Items that make our lives more comfortable

• Items that are required for survival

• Items that enhance our ability to survive.

What items are required for survival?

• Food, phones, housing

• Food, clothing, housing

• Clothing, housing, internet

• Food, housing, transportation

What is a want?

• An item that makes life more comfortable and pleasurable.

• An item that is necessary for survival.

• An item that is required for happiness.

• An item that sufficiently makes you happy.

Which of the following is a want?

• Clothing to protect you from the elements.

• Gucci purse to store beachwear

• Apples from Giant

• House to live in

Which of the following is a want?

• Driving to work in an economical affordable vehicle

• Driving to work in an expensive luxury vehicle

Which of the following is a want?

• Living in a luxurious mansion

• Living in an economical affordable house

What happens when one want is satisfied according to the concept of unlimited wants?

• It leads to needing several other wants.

• It completely satisfies all desires.

• It reduces the need for other wants.

• It eliminates the concept of wants.

What is a "good" in economic terms?

• A service provided by a company

• Things that can be seen or touched (tangible)

• An idea or concept

• A financial transaction

What is a service?

• A physical product you can touch

• Things that satisfy our wants through the efforts of others or by equipment

• A type of food

• A form of entertainment