NEEDS AND WANTS

I Need You
The difference between "needs" and "wants"
 Needs would be defined as goods or services that are required. This would include the needs for food, clothing, shelter and health care.

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

An important part of 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.

QUICK QUIZ

1. Goods or services that are necessary for living such as food, clothing, shelter are:
 a.  needs  
b.  wants  
c.  advertising

2. Goods and services that are not necessary for living such as toys, games, entertainment are:
 a.  needs  
b.  wants  
c.  advertising

3. Many times people think they need things that they in fact want due to the power of
a.  scarcity  
b. advertising  
c. distribution

4. A time when there are not enough goods and services to meet people's needs is
 a.  scarcity  
b. advertising  
c. distribution

5. This is an important part of economics that helps insure people's needs and wants are met
 a.  scarcity  
b. advertising  
c. distribution

1.  a
2.  b
3.  b
4.  a
5.  c

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