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Wants, Needs & ScarcityUniversity High SchoolMr. Barnett
Cathenne wants:
Kevin, Emilia, Dayanna want:
Tessa wants:
Joseph wants to:
Courtney wants:
Stephanie, Catalina, Chenxi want:
Michelle wants:
Timothy wants:
Charley wants:
Zac wants:
Elena wants:
Adrian wants:
Caitlyn wants:
Alexis & Fabian want:
Daniella and Mei lin want
Daniella, Natalie, Zack want:
Kevin and Sergio want:
Wants vs NeedsAs you can tell we have unlimited wants
A want is a desire, often psychologically motivated, for a particular item or thing
A need is something that is usually physiological necessary and has no adequate substitute
Wants vs NeedsSociety has unlimited wants
but limited resources Thus, there is scarcitySomething is scarce if there is
a limited amount of itScarcity occurs because we
have virtually unlimited wants but limited resources
Wants vs Needs Since there are limited
resources but unlimited wants, there is a cost for everything
The cost is not necessarily monatary
They can be social, environmental, psychological, emotional, physical ..etc etc
These are called opportunity costs
So what is the definition of economics?Economics is the study of how individuals and society, experiencing virtually limitless wants, chooses to allocate its scarce resources to satisfy those wants
Opportunity Cost Opportunity cost is the value
of the next highest valued alternative or foregone cost.
Not necessarily monetaryEvery decision that you will
make in life involves opportunity costs