ASSIGNMENT 1

NEEDS AND WANTS

Aim: To identify and understand the needs and wants of a family

Objectives:
• To identify the difference between needs and wants
• To categorize needs to personal, family and community

Theory:
We all know that economics is a social science, which deals with production, distribution and
consumption functions. It is all about making choices regarding the allocation of scarce
resources, so as to make their best possible use and satisfy human wants and needs. In
economics, we often go through the terms needs and wants, but have you wondered about their
differences. Needs point out the something you must have for survival.

On the other hand, wants refers to something which is good to have, but not essential for
survival. For the purpose of spending and saving money wisely, every person must know the
difference between needs and wants.

BASIS FOR
NEEDS WANTS
COMPARISON

Meaning Needs refers to an individual's Wants are described as the goods and
basic requirement that must be services, which an individual like to
fulfilled, in order to survive. have, as a part of his caprices.

Nature Limited Unlimited

What is it? Something you must have. Something you wish to have.

Represents Necessity Desire

Survival Essential Inessential

 BASIS FOR
NEEDS WANTS
COMPARISON

Change May remain constant over time. May change over time.

Non-fulfillment May result in onset of disease May result in disappointment.

or even death.

ACTIVITY:

List of Needs:
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Classification of listed needs into the following categories:

____Personal Needs____ _____Family Needs_____ __Community Needs__

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List of Wants:
_____________________ ______________________ ____________________

_____________________ ______________________ ____________________

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Learning outcome:
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