nature of scarcity, wants and needs

1. SCARCITY, WANTS, & NEEDS Mr. Rey Belen

2. Economic Questions 1. What to produce? 2. How to produce? 3. For whom?

3. Basic Economic Concepts CIRCULAR FLOW OF ECONOMIC LIFE CHOICE TRADE OFF OPPORTUNITY COST PRODUCTION- POSSIBILITY FRONTIER SCARCITY UNLIMITED WANTS & NEEDS

4. Realities Scarcity, however, does not imply that the amount of resources or the state of technology is fixed. Scarcity limits the total output from the economy There are not enough resources in the world to satisfy the unlimited wants and needs of all people

6. examples…

13. Scarcity… scarcity exist in varying degrees: perhaps would have very little work to do in satisfying his needs if economic resources were no scarce… scarcity exists and there is no way of escaping from it, we have to understand the consequences that it brings shortage is no less than a temporary economic phenomenon which can be remedied by adjustment in the marketplace

14. The nature of Wants human wants in the broadest sense cover many areas beyond the reach of economic satisfaction… after one wants has been satisfied, others will surface because human wants are insatiable!

15. Unlimited Wants and Limited Income What are the things that you would like to have? as you think about this question more seriously, you will discover that the list is almost endless… it is natural for you to want something more than you have if you do not want something more than you have, you are probably dead

16. Limited Resources scarcity of resources is the main reason why we cannot have everything we want Source: National Geographic, October 1998 these must be apportioned in such a way that they will provide the greatest satisfaction to those who need them How are you helping make decisions in the allocation of goods and services in simply being a consumer, give the fact that we have limited resources and man have unlimited wants?

17. Prioritizing Wants “ FREEDOM OF CHOICE” you have the freedom to decide what you would like to do with your money you are free to determine the amount of money you will spend and the amount of money you want to put in a bank you have the freedom to choose the school where you would like to study freedom to choose the course you would like to take in college *all these are related to the income you and your parents have

19. The Nature Of Needs MASLOW’S HIERARCHY OF NEEDS he based his theory on the study of outstanding person (self-actualized)