Question

In Economics we differentiate between peoples’ “wants and needs” and their “resources”. Explain what these terms mean and how they are used in understanding economic decision-making.

Answer 1

In the broadest sense, the essence of Wants human wishes encompasses many places beyond the scope of economic fulfillment because one wishes to be fulfilled, others will emerge as human needs are insatiable Endless Wants and Limited Income What are the things you would like to have? When you think more seriously about this issue, you'll find that the list is almost infinite, and it's normal for you to want more than you have if you don't want more than you have, you're probably dead.

Limited resource availability is the key reason that we can not have anything we want it to be distributed in such a way that it brings the greatest pleasure to those who need it. How do you help to make choices on the distribution of goods and services simply by being a consumer?

Prioritizing Wants "Freedom of choice" You have the right to decide what you want to do with your money you are free to choose how much money you are going to invest and how much money you want to invest in a bank you are free to choose the school where you want to study free to choose the course you want to take in college all of these contribute to the income you earn.

Difference Between Wants and Needs Wants applies to all things that people buy when their income is limitless, everyone has infinite needs that can not be entirely fulfilled from an economist's point of view because of limited resources Needs undefinable, but the word need is used very lightly in most discussions, what people generally meant is that they want what they don't have. Reality in the world of scarcity: Any desire that ends up satisfying makes one or more people want to stay unsatisfied