SATISFACTION OF HUMAN WANTS

Introduction

Human wants

These are the desires that human beings strive to

satisfy by using goods and services.

Satisfaction of human wants

This is the process of acquiring and using goods and

services.

Characteristics of human wants

a.) They are complementary

Satisfaction of one want may lead to another want.

b.) Competitive

They compete for attention such that each one of

them yearns to be satisfied first.

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c.) Vary in urgency and intensity

The amount of goods to be satisfied vary from one

person to another and from time to time depending

on age, sex and situation.

d.) They are insatiable

Human wants cannot be fully satisfied because

they are endless and unlimited in number.

e.) They require resource

Human wants requires resources to be satisfied

such as money

f.) Some are universal

Most human wants are common to everybody

although they vary in quantities.

g.) They are recurrent ( repetitive)

A particular want will demand to be satisfied over

and over again because wants are not fully satiable.

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Types of human wants

I.) Basic wants/needs/primary wants

These are requirements that one cannot do

without because they are necessary for life. They

fall under food shelter clothing.

Characteristics

 One cannot do without them.

 They are felt needs.

 They cannot be postponed.

 They are satisfied before secondary wants.

II.) Secondary wants

These are requirements that one can do without

but they are required to make life more

comfortable. They are categorized into:

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 a.) Comfort

These are wants that improve one‟ s living

standards beyond the level of mere survival b.)

luxury

These are requirements that provide excessive

comforts.

Goods and services

Goods are physical commodities that are tangible

while services are actions which are intangible.

Characteristics of goods

a.) Are tangible

They can be touched and felt because they are

material.

b.) Can be stored

They can be stored for future .The ones that can

be stored for longer time are called durable goods

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while perishable goods cannot be stored for a

longer time.

c.) Quality can be standardized

The quality of goods can be made uniform through

mechanization.

d.) Can change possession

Goods can change ownership from one person to

another through trade.

e.) Can be seen

Most goods can be seen except for a few

exceptions such as air.

f.) Can change in quality over time

Some goods may lose value over time such as

motorcars and furniture.

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Characteristics of services

a.) Are intangible

They cannot be felt or touched because they are

immaterial.

b.) Cannot be stored

Services cannot be stored for future use because

they can are consumed as they are provided.

c.) Quality cannot be standardized

Quality cannot be standardized because the

quality of services are highly variable over time

and from one provider to another.

d.) Inseparable from the provider

Services cannot be separated from the provider as

they are provided directly to the consumer.

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 e.) Cannot be seen

They cannot be seen since they are intangible and

immaterial.

Differences between goods and services

Goods Services

Are tangible Are intangible

Can be stored Cannot be stored

Can be Cannot be standardized

standardized

Cannot be separated

Can change from the provider

possession

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 Services are highly

Not all goods are perishable

perishable

Cannot be seen

Most can be seen

Cannot change in value

Can change in value since they cannot be

store

Characteristic of Economic resources

a.) Scarce in supply

Economic resources are less in supply than what is

required by human beings

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 b.) Have money value

Economic resources have monetary value

through which they can change ownership

c.) Unevenly distributed

Some places may have plenty of the resources

while others may have less because they are

available in varying quantities.

d.) Have utility

Utility is the usefulness or ability to satisfy a

human want.

e.) Have alternative uses

Economic resources can be put into different uses

f.) Can change ownership

Change in monetary value from one person to

another may be effected by sale since it has

monetary value.

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 g.) Can be combined

Economic resources can be combined in various

quantities to produce other goods and services.

h.) Can be complimentary

Different economic resources may be consumed

together.

Classification of economic

resources They can be

categorized as discussed

below:

a.) Natural resources

They are resources that occur naturally, man play

no part in their creation. They include forests,

rivers, mountains, lakes, climate and land.

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 b.) Man- made resource

They are resources that are created by human

beings to be used in satisfying their wants. They

are also called artificial goods. Man –made

resources are used to produce goods that are

either consumer or producer goods.

Consumer goods – goods consumed directly.

Producer goods –goods used to produce other

goods. Also known us capital goods.

c.) Human resource

These refers to human beings when rendering

their services in production.

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Renewable Resources and Non – renewable Resources

a.) Renewable resources

These are resources whose supply can be restored

and if they are not, creation of goods and services

is reduced and it may stop altogether.

b.) Non – renewable resources

These are resources whose supply cannot be

restored after [Link] these resources can lead

to their resources.

Renewable Non – renewable

resources resources

Wood Coal

Natural rubber Building store

Wool Gravel

Silk Iron

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 Leather Aluminum

Solar energy Gold

Hydro – electric Lead

power Natural gas

Wind power

Relationship between Scarcity, Choice and Opportunity

Cost

Scarcity refers to as less than, inadequate in

supply or limited supply of economic resources in

relation to unlimited human wants. Limited

resources necessitates choice thus making choices

among various competing alternatives according to

the order of priority. When choice is made the

foregone item becomes the opportunity cost.

Opportunity cost is therefore the value of the

forgone alternative where choice has been made.

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Opportunity cost is the value of the forgone

alternative where choice is made.

Scale of preference is a list of wants in order of

their importance.

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