Needs and Wants

One important idea in economics is that of needs and wants. Needs - G oods or services that are required in order to live or survive. This would include the need for food, clothing, shelter, health care.

Types of Needs Physical needs Social needs Emotional needs Safety needs

Physical Needs Are those basic needs that you must have to live You cannot survive without food, clothing or shelter

Physical Needs

Social Needs Are those needs met by interactions with friends, family, peers, etc. We need to know these people are nearby and are our safe place to fall if something bad happens

Social Needs

Emotional Needs Everyone has emotional needs Getting your emotional needs met leaves you with a feeling of happiness and contentment When emotional needs aren’t met, you are left with a feeling of unhappiness and frustration. Everyone has different emotional needs or feelings. Feeling that you are loved is an example of an emotional need.

Emotional Needs

Safety Needs These needs are met when you feel safe and secure in your community Having the knowledge that adequate fire protection, police protection and health care near by give one a feeling of safety

Safety Needs

Wants Wants – G oods or services that are not necessary but that we desire or wish for. For example, one needs clothes, but one may not needs designer clothes. One does not need toys, entertainment, diamonds, etc. One needs food, but does not have to have steak or dessert. One does not need glamorous trips, mall shopping, etc..

Wants

Production Production - Making goods out of natural resources and turning them into goods that consumers can purchase Examples: Trees are turned into chairs Fish is turned into sushi Gold is turned into jewellery

Good Good – A consumer product that you can buy Examples: Food, Clothes, Computers

Service Service – The action of helping or doing work for someone Examples: DJ, Taxi Driver, Plumber

Distribution Distribution – Making a manufactured product available to a consumer An important part of the economics is the distribution of resources or goods so that people's needs are met. This is especially true in times of scarcity when there are not enough resources, goods or services. Many times advertisers try to appeal to consumers in such a way that the consumers feel they need certain goods or services when in fact they only want them.