Business Studies Unit 1 AS- Needs & Wants

-  Needs are the 5 basics that humans need in order to survive, this includes:

• Food
• Water
• Clothing
• Shelter
• Warmth

- Needs can vary between cultures and  countries, For example, in a developed country, it might be free education, healthcare or quality infrastructure.

- "Wants" are items or things that people desire.

- They are what you would like to have, but they are not essential to day to day living.

-They consist of things such as:

• A new mobile phone
• A bigger house
• A swimming pool in your back garden

- In the developing world, humans always want better food; housing; transport and health services. Although economic resources are limited.

-Wants are infinite and vary between Developed and Developing countries. For example: A person struggling to feed herself (wants food) in the developing world or a millionaire who is seeking to increase their fortunes in the USA.

-Economic wants are desires that can be satisfied by consuming a good, service or leisure activity.

-Scarcity in an equation is: Unlimited wants + limited resources= Scarcity

-If not everyone can have what they want, then they have to make choices, it raises questions such as:

• shall I buy a new car or shall I go on holiday?

- This is what is called an Opportunity Cost.

-This is the cost of not choosing the next best alternative- What you give up when making the choice.