Opening Question. What is the difference between WANT and NEED ?. What you desire. What you’d like to have. MORE!. What’s required for survival. In Economics, “Needs” are no different than “Wants”. How available something is. Most things are scarce to some degree.
What’s required for survival.
In Economics, “Needs” are no different than “Wants”
Things that are freely available everywhere. e.g., Air
The study of the allocation of scarce resources in the presence of seemingly unlimited wants.
Things only have value if they are wanted. Value increases with desire and scarcity.
How satisfied you are. People will try to maximize utility – not necessarily just wealth.
There’s No Such Thing As A Free Lunch with desire and scarcity.
Every decision has costs as well as benefits
(RESOURCES) with desire and scarcity.
Machinery or tools used in production
Workers in production
Property and inputs used in production
Coordinator of production
Purchased by individuals for personal use with desire and scarcity.
Purchased by business to produce more goods
Goods that last several years (cars; appliances)
Goods that are consumed quickly (food; clothes)
An arrangement where buyers and sellers exchange goods and services. Does not need to be a physical location.
A market where exchange is voluntary. Buyers and sellers decide for themselves what and how much to buy or sell
It is the demands of consumers that decide what and how much is produced