Wants vs. Needs
What is the difference between wants and needs?
Goal:
Goal:
We all have wants and needs. Wants are desires that can be satisfied by a good or service. (I want a new bike.)
Needs are required goods or services. (I need food, clothing, and shelter to live.)
People have unlimited wants. Think about some things you want. Do you want a new toy? Do you want the latest video game? Do you want a new pair of shoes? You could probably make a pretty long list of the things you want.
But there's one problem with everyone getting everything he or she wants, and that is scarcity. Scarcity is when there is not enough of something. There is a restricted amount or limited number of resources available.
Because of scarcity, people have to make choices.
For example, Lisa wants to buy some new clothes at the mall, but she only has a certain amount of money to spend. Because of her limited resources (money), she has to make choices about what to buy. After all, she can't spend more money than she has. Although she may want a dress, a coat, a pair of jeans, and a t-shirt, her limited resources cause her to choose only the dress and the coat. These are the best choices for her.