Unlimited Wants

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Unlimited Wants Needs

• Created by
• Christopher King
• Angela Herzog

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Definition

• Humans have many different types of wants and
  needs. Economics looks only at mans material
  wants and needs. These are satisfied by consuming
  (using) either goods (Physical items such as
  food) or services (non-physical items such as
  heating).

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Why Wants and Needs are virtually Unlimited

• Goods eventually wear out and need to be replaced
• New or improved products become available
• People get fed up with what they already own

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Wants

• Definition Psychological desires that are not
  essential, that make life just a little more
  enjoyable.
• Private Wants New Bike, A Car, Money
• Public Wants New Highways, National Defense, and
  Education

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Needs

• Needs are best thought of as physiological or
  biological requirement maintaining life, such as
  the need for air, water, food, shelter, and
  sleep, and clothing.

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Satisfaction

• The process of fulfilling wants and need, whether
  or not a good is wanted or needed to be
  satisfied.
• Example
• Chris goes into a department store and notices a
  shirt he likes, Chris then buys the shirt. Chris
  does not have a desire for that shirt anymore
  because he has been satisfied until he finds
  something else he might like to buy.

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Motivation

• A huge number of unsatisfied wants and needs is
  important because it provides people with
  motivation to take action. A person being hungry
  during the meal times would get something eat.
• For economics, the act of satisfying wants and
  needs is extemeley important because it
  Motivates people to take action, to buy goods,
  to work, and to consume.

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Implications

• Limited Production
• There are not enough resources to produce
  everything that everyone wants.
• Forgone Alternatives
• The same resources cannot be used to produce two
  different goods at the same time.
• Sacrifice
• Some People must do without some of the goods and
  services that are wanted and needed.
• Opportunity Cost
• Doing one thing, producing one good, performing
  one means other things cannot be done, other
  goods cannot be produced and activities cannot be
  performed.

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Solutions

• How to Make Decisions
• The Cost of Choosing
• Opportunity Cost
• Values and Goals
• Decision Making Process
• Identify the problem
• List alternatives
• Make the best choice
• Carry out on what you have decided to do
• Evaluate your decision

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More Solutions

• Managing Your Money
• Steps in Planning a Budget
• Set Goals
• Make sure they are realistic! Give yourself
  plenty of time to reach them, but not too much
  time that you put them off.
• Estimate Income
• Generally, using 2/3 of your Gross Pay is a safe
  way for estimating your income. This will give a
  balance a little lower then actual, but this
  helps over budgeting.
• Plan for Saving
• Its a good idea to put some money aside into a
  saving account. Having money saved is good
  because when something unexpected happens, you
  have some extra money if you need it.
• Balance Adjust the Budget
• If your total estimated expenses are higher then
  your total estimated income, you need to adjust
  your budget. Either you can cut some of your
  expenses, or increase your income. This can be
  the hardest step to work with.

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Conclusion

• People always want and need more then what they
  have. Throughout history, there is no documented
  case of anyone ever becoming fully, completely,
  and absolutely satisfied. Unlimited wants and
  needs dont just motivate ordinary activities.
  They are ultimately responsible for motivating
  people to find employment, seek education, run
  for political office, explore new worlds, and
  just about everything people do in todays
  society. In fact, without unsatisfied wants and
  needs no one would ever do anything. No one would
  do anything because no one would need to do
  anything. Why bother doing anything when wants
  and needs are already satisfied.

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Bibliography

• Introductory Revision Notes Basic Economic
  Problems
• www.bized.ac.uk/stafsup/options/notes/econ201.htm
• AmosWEB GLOSSArama Unlimited wants and needs
• http//www.amosweb.com/cgi-bin/gls.pl?fcddspkey
  unlimitedwantsandneeds
• Unlimited Wants
• httpws017.k12.sd.us/General20Business/GB_U1_Note
  s.htm