NEEDS, WANTS, SCARCITY AND OPPORTUNITY COST

• A need is a good or service essential for living such as food, water, clothing, shelter, warmth, and protection.
• A want is a good or service which people would like to have but it is not essential for living.
• People's wants are unlimited and it's normally up to the person and their interests and tastes for what their wants would be.
• Scarcity is the lack of sufficient products to fulfil the total wants of the population.
• Buying a new pair of shoes or using the money for a new phone or laptop is also an example of opportunity cost.
• Scarcity is a situation where there are unlimited wants and limited resources.
• We have limited resources and unlimited wants, therefore, we have to decide which ones we will satisfy and those we won't.
• Opportunity cost is the next best alternative given up by choosing another item.
• Taking the bus to school or using the money to buy a new pen for clear notes is an example of opportunity cost.