Definition of Human Wants
Human wants are countless and are of various kinds. A human is a bundle of desires, with wants infinite in variety and number. Some wants are natural such as food, air, clothing, and shelter without which existence is not possible. However, with the development of social, cultural, and ethical values, these wants can be controlled by humans to a certain extent.
Characteristics of Human Wants
- Human wants are unlimited: There is no limit to man’s wants. When one want is satisfied, another crops up, and thus, it becomes a never-ending cycle. Humans develop a chain of wants, which continue one after the other.
- Any particular want is satiable: If the resources are made available, it will be possible to satisfy any want.
- Wants are complementary: Many times, a single article out of a group cannot satisfy human wants by itself. It needs other things to complete its use. For example, a motor car needs both petrol and engine oil to keep working. Thus, the relationship between petrol and engine oil is complementary.
- Wants are competitive: Some wants compete with each other. Wants compete because all of them cannot be satisfied at a time, and therefore, a choice has to be made between them. Therefore, we must choose something and reject the other. Examples: Sugar and jaggery, tea and coffee
- Wants vary in urgency and intensity: All wants are not equally urgent and intense. Some wants are urgent, while some are less urgent.
- Wants are recurring: Some wants are recurring and we require these again and again. Examples: Food, water
- Wants are variable: With the advancement of civilization, wants vary and multiply. Example: The wants of the people living in urban areas differ from those in villages.
- Necessaries of existence
- Necessaries of efficiency
- Conventional necessaries
- Harmless Luxuries
- Harmful Luxuries
- Necessaries of existence: The things without which we cannot exist. Examples: Water, food, clothing, shelter
- Necessaries of efficiency: The things which increase our efficiency. Examples: Fruits, vegetables
- Conventional necessaries: The things which we are forced to use by social customs. Examples: Dowry, parties
Comforts: After satisfying our necessities, we desire to have some comforts. Examples: Electric cooker, refrigerator
Luxuries: Luxury means excessive consumption. After getting comforts, man desires luxury. Luxury articles are those which are not needed. Examples: Gold, silver, costly furniture
Money is anything that acts as a medium of exchange, a measure of value, a standard of deferred payments, and a store of value. It consists of currency and demand deposits.
Income is the result of capital used in production. Production of goods and services generates income.
It is the well-being or satisfaction of a human for possessing wealth. Human welfare is classified as economic welfare and non-economic welfare. Economic welfare shows the part of human welfare which can be measured in terms of money. Non-economic welfare is the one that cannot be measured in terms of money such as environment, law and order, and social relations.
Micro and Macro Economics
The term ‘micro’ was derived from the Greek word ‘mikros’ which means ‘small’. Microeconomics studies the economic relationships or economic problems of an individual firm, household, or consumer. It is concerned with the determination of output and price for an individual firm or industry.
The term ‘macro’ is derived from the Greek word ‘macro’ which means large. Macroeconomics studies economic relationships or economic problems of the economy as a whole. It is concerned with the determination of the aggregate output and general price level in the economy as a whole
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