Human needs and wants / Scarcity vs Shortage

Human needs and wants 

The main problem in the economy- the scarce resources and unlimited needs and wants of the people. wants become needs, and needs become wants.

Resources are scarce but the needs and wants of man are unlimited. Make economic choices and decisions based on their needs and wants. It is important that you know the difference between what you want as well as what you need to attain satisfaction and happiness in life.

Difference Between Needs and Wants

Needs- the things necessary to survive

- We need goods and services like food shelter, and clothing to live and exist. These are necessary to have a healthy life. 

-It is natural for man to have needs in order to survive. 

Wants- are the things which people consume to satisfy their desires and pleasures, beyond their necessities.

- People are not easily contented on simple and ordinary food, clothing, and shelter.

-People can survive, even without these things.

Example:  perfume, watches, jewelry, massage and spa, and beauty regimens.

• The desire to achieve all our needs and wants is the reason why we keep ourselves busy to earn a living. 

• Wants become needs because of our environment, the people, and even circumstances around us. As the country develops, human needs and wants change. People start to look for more goods. 

Nowadays, our world is fast changing that is why the things that began as a luxury has become our necessity. Some things which are considered human wants by some people are basic needs to others. 

Progress- tends to make people to aspire for more things for self-satisfaction.

Studies and researches- can be used to understand human needs. 

Abraham Harold Maslow- formulated one of the famous theories about the human needs.

Utility- in economics, this means happiness

Created need- considered necessary because of easy access to communication in a society that has reached the age of globalization and digital era. Not needed to survive. Makes our lives easier. Ex: car, cellphone, laptop

Maslow's Hierarchy of Human Needs

Abraham Harold Maslow (1908-1970)- a sociologist who underscored that each individual has different needs. According to him, human needs have different degrees depending on the abilities of the individual to achieve these needs and be satisfied.

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. Our body should be given sufficient nourishment to make them strong, functional, and healthy.

-is the reason we eat when we feel hungry, drink when we are thirsty, and rest when we feel tired.

 -are classified as primary needs together with food. We need clothing and shelter in order to live.

Aside from physiological needs, we still have other primary needs in the form of security and safety needs.

Security and safety needs-  All of us want to feel secured and safe at all times.

-some people buy insurances like health plan, memorial plan, pension plan, and educational plan. By having these insurances, they do not worry about their future.

-People, generally, want good health, decent housing, peace and order; freedom from fear and danger, and freedom from poverty. 

-On its part, the government exercises measures Ilke legislation and proper implementation of laws that protect its citizens; higher income for workers and medical assistance or subsidy to the people

Secondary needs- Not all our needs are material things Other needs like love, respect, belongingness, and appreciation of others are considered this.

We still crave for our personal satisfaction.

No man is an island-  describes the nature of humans to seek company. 

Joining an organization or peer group- keeps our spirit alive. 

Belongingness and love needs- This kind of behavior shows how our relation to others satisfies our need for love, friendship, and association.

Esteem needs- Then if we have the feeling of security brought by our loved ones and friends, 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.

- There is self-fulfilment in our life because all our dreams, aspirations, and ambitions have been realized.

Factors that Change Our Needs and Wants

Our needs and wants change across time. 

1. Education- The needs of men differ according to educational attainment. Those who achieve higher education have different needs than those who are not able to finish schooling.

2. Income- Giving emphasis to our primary needs vary based on the income of the individual. The value and kinds of food, clothing, and all material things reflect the big difference between the rich and poor, and the gap in their income.

3. Age- As a person grows older, his/her needs and wants change. As we grow old, our preferences for food, clothing, and recreational activities also change.

4. Tastes and Preference- Teenagers have different needs and wants compared to adult. The food they like to eat, clothes they like to wear, and TV programs they like to watch are not the same as what older people prefer. Even people of different countries vary in their food preference. 

5. Profession- the social status of man in the society changes his/her needs and wants. Sometimes, there are things that are considered wants by some people but to other, they become needs.

Example: A car is not a need of a janitor, clerk, or laborer but to a businessman, executive, or manager, it may be a need. To the rich and able people, it may be considered a want. The food preference and lifestyle of an executive which is considered a want is not the same as what ordinary people need to eat and enjoy. 

Scarcity and shortage diffirences/definition

• Scarcity

• Resources are limited to satisfy the unlimited needs and wants of people

• A universal condition, takes a long time to solve

• Shortage

• Caused by negative strategies AKA hoarding(negative strategies make artificial storage)

• A cartel is a group of businessman

Basic economic problems

• What to produce?

• Produces goods according to economy needs

• How to produce?

• Labor intensive technique - Hires humans to make things

• Capital intensive technique - Uses machines to produce

• How much to produce?

• Economy decides how much of a product to produce

• For whom are the goods to be produced?

• Identify who gets the final products

• How to distribute goods?

• Delivery of goods