Wednesday, February 27, 2013

Needs vs. Wants

The basic premise for economics is the idea of scarcity. Scarcity means that people have unlimited wants and needs while the finite resources on the earth at any given time is not sufficient to satisfy unlimited wants. Thus, economics focuses on the finite choice each individual must make to allocate the resources they have to specific wants and needs.
 
With this in mind, what is the difference between a need and a want? What are three (3) areas of your life do you have the most difficulty distinguishing between a need and a want? Explain why you think you have such difficulty deciphering your needs versus wants for each of the three areas you listed.

No comments:

Post a Comment