TABLE1 Needs versus wants Deýnition
Examples
Properties
Finite list: • They must be satisýed if life is to continue. • They remain throughout life. • They are weaker when satisýed. Unlimited list: • Life can continue without them. • Wants change throughout life. • New wants arise once others are satisýed.
Needs
Goods or services that are essential for life
Water, food, shelter, air, clothing, medication
Wants
Non-essential goods and services
Torch, bed, ýshing rod, armchair, toothbrush, mobile phone, laptop
16.2.2 Goods and services To meet our needs and wants, we buy goods and services. Goods are things we can see and touch, like food, mobile phones, cars and clothes. Services are actions done for us, like those from doctors, dentists, banks, mechanics and teachers. If you were alone on a desert island, you would have to make or ýnd everything you need and want. You’d be a one-person economy, producing and consuming all the goods and services. In today’s world, we usually rely on businesses to provide these goods and services.
SkillBuilder discussion Investigating 1. Make a list of the goods and services that you have bought or have been bought for you in the last week. 2. Are there any examples that are hard to categorise as a good or a service?
FIGURE2 As consumers, we can buy goods or services.
TOPIC16 How markets work 549
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