HUMAN WANTS:

These are desires (needs) that individuals wish to achieve in order to live.

Types of human wants:

Basic human wants, these are desires/ needs which are essential and necessary for human
existence, e.g. food, shelter, clothing.

Secondary wants, these are desires which are not very essential or necessary for survival of
human beings, but the satisfaction of such wants improves the standard of living and make
life comfortable, e.g. phones, cars, computers etc.

Some wants may be material (these are desires that can be satisfied by the consumption of
goods) or immaterial (these are desires that can be satisfied by consumption of services
other than tangible commodities).

Characteristics of human wants:

▪ They are unlimited.
▪ They are competitive.
▪ They are dynamic.
▪ They are insatiable.
▪ They are complementary.
▪ They vary in urgency and intensity.
Define the term human wants.
Give any three characteristics of human wants.

SCALE OF PREFERENCE:
This is a list of wants arranged in order of priority starting with the most pressing needs to
the least pressing ones.
It is important in economics because it helps one to make the best choice given the scarce
resources.
It helps one in budgeting/ avoids impulse buying.

Types of goods:
1. Economic goods (2008-p.2) are those that are scarce relative to their demand and they
possess money value.
Characteristics of economic goods
▪ They arise out of scarcity.
▪ They possess money value.
▪ They provide utility.
▪ They involve an opportunity cost.

2. Free goods (2008-p.2), are those that exist in natural abundance and are consumed at zero
price, e.g. sunshine, air, rain e.t.c.
3. Public goods (2008-p.2), are those which when provided (usually by the state) for a
particular group or individuals becomes available for others to use at zero or no extra costs
and consumption by one person does not reduce the amount available to other users. E.g.
defence, roads, street lights, street clocks e.t.c.

Characteristics of public goods:

▪ They are mainly provided by the government.
▪ They are non-excludable (used by all people).
▪ They are indirectly paid for.
▪ They are non-rivalry (no competition).
4. Private goods (2008-p.2) are those which are enjoyed exclusively by private individuals.