Econ/Needs and Wants

Economics is the study of how people satisfy their needs and wants. Needs are things that a person has to have to survive like food, water, and shelter. Wants are those things that you would like but do not need to survive like a car, a phone, T.V etc. But there is also scarcity which is when you have a limited amount of resources to meet unlimited wants and need. In other words, scarcity is when there is a lack of resources to meet a big demand. Everything is scarce so there is a limited amount of resources and we need to make choices and that is why we do a trade off.

Know the difference between needs and wants, knowing that there is scarcity and that there is trade-off is important so you can have your priorities straight. If you had an option between a new phone or a book that you need for college you would need to make a choice and get your priorities straight to make the right choice. If you did not have your priorities straight and knew the differences between need and want then chances are you would have chosen the new phone instead of the book that you need for college.