NEEDS AND WANTS

The most basic economic concept is economic problem. Every society faces this reality due to its
people's unlimited wants and limitation in resources. The purpose of economics involves how
best the scarce resources can be used in order to make goods and services to satisfy as many
wants as possible. Goods and services that we need are things which are compulsory to live or
survive. Examples of needs are food, clothing and shelter Humans also have other needs, such as
sleep and love, but they are not considered as part of economics. That is because there is no
process that uses resources to bring abo the satisfaction of these needs.

In contrast, the goods and services that we want are things that bring pleasure but which are not a
necessity to live. For example, television. In other words, wants are the things that you would
like to have, but these are not necessary for survival and you can live without. Wants are desires
that can be satisfied by consuming or using a good or service. Human wants are unlimited. This
is because when one want is fulfilled there is always a desire for another. For example, to have
expensive perfumes, toys, CDs, etc.

Alternative Uses of Resources

Human wants are unlimited while the resources to produce goods and services to fulfi these
wants are limited. Therefore, nobody can have sufficient goods and services to ful all their needs
and wants. This leads people to make choices. Scarce resources can be used in a lot of ways to
make different goods and services. For example, in Male, land is scarce A piece of land in Male
can be used in different ways, such as to build a hospital a playground or a school. Another
example in Maldives would be the uninhabited islands The government can use these resources
(islands) in many different ways, such as leasing for resort development, industrial development
and agricultural development, or perhaps for urbanisation. Thus, one resource can have may
uses. Governments and people around the world must choose how scarce resources can be best
utilised.

Our scarce resources are best utilised when they are economised for the production of goods and
services increasing their sustainability. Economising is making the most of what we have, that is,
using the limited resources in such a way that it gives the maximum benefit and reduces wastage.
For the individual, this means using one's abilities and spending one's income in a way that gives
the most satisfaction or benefit. For the community as a whole, it means using people's skills and
energy, the land, the buildings, the machinery and other economic resources so as to obtain the
highest possible standard of living.
While resources are limited. human wants remain unlimited with a new want created once one
want is fulfilled Scarcity is the economic problem of humans with unlimited wants and limited
resources to fulfil their need. Every society faces the problem of scarcity leading to make
choices. For example, breadfruit is seasonally grown and scarce due to seasonal harvest. Scarcity
results the prices of breadfruit to increase
Our scarce resources are best utilised when they are economised for the production of goods and
services increasing their sustainability. Economising is making the most of what we have, that is,
using the limited resources in such a way that it gives the maximum benefit and reduces wastage.
For the individual, this means using one's abilities and spending one's income in a way that gives
the most satisfaction or benefit. For the community as a whole, it means using people's skills and
energy, the land, the buildings, the machinery and other economic resources so as to obtain the
highest possible standard of living