Understanding Needs and Wants in Economics
In economics, needs are essential for survival while wants are desires that are not crucial. The study of economics involves allocating scarce resources to maximize meeting both needs and wants. Our needs have limits, but our wants are unlimited and vary among individuals, making it challenging to fulfill all wants. An activity based on a UK survey categorizes items desired by men and women to maximize happiness, highlighting common and unique preferences.
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Presentation Transcript
For economists, a need and a want are defined as: Need: something you must have, in order to survive Want: something you desire but it is not essential Economics is the study of how we allocate the scarce resources available to us to maximise the opportunity to meet as many of these needs and wants as possible. What makes this even more difficult is that, whilst our needs may have some limit, our wants are unlimited and different for each individual.As a consequence, not all wants will be met.
Activity: The next slide shows the findings from a UK survey which asked a group of men and women which items they most wanted (to maximise their happiness). Some of the items belonged to the top 10 list for women, some belonged to the top 10 list for men and some belonged to both lists. Your task is to categorise the items.
Home Photographs of deceased relatives Both Wedding ring women and men Car Family photos Smartphone Family pet Laptop Engagement ring Jewellery MEN WOMEN Photo of significant other Computer Childhood pictures
Family photos Home Photographs of deceased relatives Family pet Car Wedding ring Smartphone Photo of significant other Engagement ring Jewellery Laptop Childhood pictures Computer MEN WOMEN
