Human needs and wants / Scarcity vs Shortage

Scarcity

A universal condition, takes a long time to solve

Shortage

Caused by negative strategies AKA hoarding

Cartel

group of buisnessmen

What to produce

Produces goods according to economy needs

Labor intensive technique

Hires humans to make things

Capital intensive technique

Uses machines to produce

For whom are the goods to be produced?

Identify who gets the final products

How to distribute goods?

Delivery of goods

Abraham Harold Maslow

formulated one of the famous theories about the human needs

Utility

in economics, this means happiness

Maslow’s Hierarchy of Human Needs

states that the primary needs of man must be satisfied first before considering other higher needs.

Physiological needs

The first in the level of needs which are concerned with the mechanism of the human body to function normally

Security and safety needs

All of us want to feel secured and safe at all times

Secondary needs

Not all our needs are material things Other needs like love, respect, belongingness

No man is an island 

describes the nature of humans to seek company

Belongingness and love needs

This kind of behavior shows how our relation to others satisfies our need for love, friendship, and associations

Esteem needs

we want to achieve respect from others. We do our best to be recognized, respected, and appreciated by our peers or colleagues, which gives us deep personal satisfaction

Self-actualization

The highest degree of human needs, we show what we are and what have achieved as a person