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Chapter 2- Human Wants

Chapter 2- Human Wants

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Published by Varuna Sharma

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Published by: Varuna Sharma on Sep 24, 2010
Copyright:Attribution Non-commercial


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SYNOPSIS1.Types of human wants2.Feature of Human Wants3.Factors affecting human wants
Consumption is the act of satisfying human wants andforms an important aspect of the study of economics.
Hence consumption refers to the use of goods and servicesto satisfy human wants.
Hence from the day we are born we become consumersthat are we enjoy goods and services (economic goods) forwhich we pay a price.
Consumption enables production to take place.
 Therefore in recent years the importance of consumption isincreasingly recognized.
“Consumption in the beginning and end of all production”
Goods and services produced in any economy will dependupon the wishes of the consumers. If consumers like aparticular commodity i.e. it satisfies their particular want,then that commodity will be produced.
Hence a consumer is said to be the king or the “sovereign”
 Therefore it is to satisfy the consumers that production oreconomic activity takes place which means that the levelof production, employment and income in any country willdepend upon the volume of consumption.
 The larger the consumption the larger the production andvice versa.
Even human beings perform economic activities or work inorder to satisfy their wants.
So, wants form the basis of all economic activities.
Wants can also be called the desires or needs of thepeople.
Everyone works in order to satisfy their wants.
Wants are basically the basis of all economic activities.
Hence we can say:
1.Men have wants and needs.2.They have to satisfy them3.They require money to satisfy their wants.4.They have to work to earn money.
Earlier people were satisfied with simple food, clothing, andentertainment.
But today people simply want everything they like and canafford to have.
There is a continuous increase of wants.
As wants increase production and trade too will have to increase.
 There will be increasing employment.
The various types of human wants are:1.Primary wants- Necessaries2.Secondary Wants- Comforts and Luxuries.1.Primary Wants- Necessariesi. Necessaries for existence
Man requires the basic wants namely food, water, clothing, andshelter.
Without food a person cannot live at all.
Hunger is so painful that a man will do anything to satisfy it.
Also, considering that we are living in a civilized society, manalso requires clothes.
A man may be prepared to starve but will not like to go outwithout some clothes.
Housing comes at a lower level but it is again a necessity.
 These are wants which are
essential and necessary for existence.ii.
Necessaries for efficiency
Besides those necessaries which are essential for humanexistence there are other which are necessary for efficiently.
Table and chairs may be regarded as necessary forstudents. For a construction worker working one building site or acoolie on railway platform, plenty of food is necessary forefficiency.
iii. Conventional Necessaries
 There is a third type of necessity known s conventionalnecessaries.
Convention means tradition or custom.
People would like to possess those goods which everybodykeeps.
A woman would like to have a TV if her neighbor has one.If one family a refrigerator the other families will want one too.
Necessaries for existence, necessaries for efficiency and conventional necessaries are together known as primary wants.
2.Secondary Wants- Comforts and Luxuries.i. Comforts
People like many types of goods because they are a source of comfort and happiness to them.
An additional chair in a room, a record player in the house, differentvarieties of food etc make ones life comfortable and pleasurable.
In a broad sense necessaries for efficiency and comfort appear to besimilar.
But goods which are necessaries for efficiency tend to promoteefficiency while those goods which are comforts have the tendencyto make life comfortable.
a student may desire a table and chair though he can dowithout it but the table and chair would increase his efficiency.
 There is no hard and fast rule in all these.
What one man considers as a necessity another may consider as acomfort.
ii. Luxuries.
Luxuries refer to those wants which re very expensive and whichare meant mainly to show wealth and power of a person.
As they are expensive items only the rich can afford them.

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