GREAT DAY, CLASS!

WELCOME TO ECONOMICS SUBJECT!

THE FILIPINO
CONSUMER
CHAPTER 2
 NEEDS
WANTS
ECONOMICS WANTS
NONECONOMIC WANTS
BASIC WANTS
CREATED WANTS
 PUBLIC WANTS
PRIVATE WANTS
FREE GOODS
ECONOMIC GOODS
ENGEL’S LAW
NEEDS AND WANTS
DISTINGUISHED
 NEEDS
❑ Some individuals define needs as the basic
requirements for survival.
❑ This is a very narrow definition.
❑ It limits needs basically to man's physiological
requirements.
❑ People are a composite of body and soul. They do not
only need food, shelter, and clothes, but also education,
spirituality, love, confidence, and other things.
 NEEDS
❑ Some individuals define needs as the basic
requirements for survival.
❑ This is a very narrow definition.
❑ It limits needs basically to man's physiological
requirements.
❑ People are a composite of body and soul. They do not
only need food, shelter, and clothes, but also education,
spirituality, love, confidence, and other things.
Motivation and Personality
and Toward a Psychology
of Being

Abraham Maslow
Basic needs Higher needs
 Higher needs

order justice unity

truth beauty

Self-actualization
 Thus,
People who lack food, shelter. or Maslow believed that safe and healthy
clothing, or find themselves in an people are capable of satisfying even
unsafe and uncomfortable the highest psychological needs.
environment cannot adequately meet
and express their higher needs.

These people may now have the They use their wealth, talents, and
capacity to reach out in their society . skills to help others improve their life
Some of them organize foundations to
carry out their philanthropic missions.
wants
wants
These are mere
expressions of
needs. These are
specific things
people wish. At the
same time, this wish
is also a choice.
For instance Jessica needs a pair of
rubber shoes, but she wants the
Adidas brand or Rhodora needs a
television, but she wants a Samsung
LED model. On the other hand, other
individuals, interpret the term as
referring only to things that fall under
man's whims and caprices. They
identify flashy cars, expensive jewelry,
and mansion av belonging to this
concept.
 For instance Jessica needs a pair of
rubber shoes, but she wants the
Adidas brand or Rhodora needs a
television, but she wants a Samsung
LED model. On the other hand, other
V individuals, interpret the term as
referring only to things that fall under
man's whims and caprices. They
identify flashy cars, expensive jewelry,
and mansion av belonging to this
concept.
ECONOMIC AND NONECONOMIC
WANTS
TWO BROAD TYPES OF WANTS IN
ECONOMICS
 Jeffrey's desire to be reunited
Jeffrey has just come home from the with his pals is a noneconomic
United States where he worked for the want.
past five years. He missed his friends so
much so he threw a “barkada” reunion
party. He rented the clubhouse in their
village hired caterers, ordered and sent Friendship is one thing people
value in life
invitations to his friends, rented a sound
system and bought some drinks. He
actually did not mind spending too much.
All he wanted was to see all his friends
again and to reminisce their good old days
together
Jeffrey has just come home from the
United States where he worked for the
past five years. He missed his friends so
much so he threw a “barkada” reunion
party. He rented the clubhouse in their
village hired caterers, ordered and sent
invitations to his friends, rented a sound
system and bought some drinks. He
actually did not mind spending too much.
All he wanted was to see all his friends
again and to reminisce their good old days
together
When people fight for
justice, they hire the
best lawyers in town.
Some watch a movie in
order to relax.
Economics is concerned only with the
study of economic wants. The study
of noneconomic wants is left to
other disciplines, such as
philosophy, political science,
theology and psychology.
Free goods and
economic goods
Produce acquired without cast are
called free goods.

• They are generally abundant and for

everyone's consumption.
They are not for sale.
Sunlight, rainfall, the panoramic view
of mountain ranges, and the air we
breathe are examples of free goods.
 Economic goods are for sale.

People acquire these goods by buying them.

They are economic goods because producing
and acquiring them entail cost.
Economic goods are
further classified into
intermediate or final.
Intermediate goods are
those acquired for
further processing or
investment.
Economic goods are
further classified into
intermediate or final.

However, if it was
bought for personal use,
then it is a final good.
CLASSIFICATION OF
ECONOMIC WANTS
 Dr. Bernardo M. Villegas, in his book Guide to Economics for
Filipino

basic and created public and private

Basic and created Private and public
wants are wants are
economic wants economic wants
based on the type
based on the
and number of
degree of
consumers and on
importance to the sector that
consumers. provides for them.
 basic

• Basic wants are the people's necessities in life.

• Most people cannot live without them.

• here are two kinds of basic wants universal and relative.

 Food, shelter, and
clothing are the
basic
universal basic wants
All people need them.

• Basic wants are the people's necessities in life.

Relative basic wants
• Most people cannot live without them.
are the things that
particular
• here areindividuals
two kinds of basic wants universal and relative.
consider as extremely
important to them
based on their
condition or situation
in life.
 created

• Created wants are media creations.

• Media condition the minds of consumers that products
advertised are necessities.
• Created wants provide the people with luxury, prestige,
comfort, and convenience.
 Dr. Bernardo M. Villegas, in his book Guide to Economics for
Filipino

basic and created public and private

Basic and created Private and public
wants are wants are
economic wants economic wants
based on the type
based on the
and number of
degree of
consumers and on
importance to the sector that
consumers. provides for them.
 public

• Collectively, these economic wants are called

public wants.
• These are what the entire population needs.
• These things are for the common good. They
benefit the whole nation without discrimination.
 PRIVATE

• The private sector helps in the delivery of some

basic social services.
 PRIVATE

• The private sector helps in the delivery of some

basic social services.
 PRIVATE

• The private sector helps in the delivery of some

basic social services.
BUT
This does not mean, however,
that the government is turning
its back from its responsibility.

CREDITS: This presentation template was created by

Slidesgo, including icons by Flaticon, and infographics
& images by Freepik and illustrations by Storyset
BUT
This does not mean, however,
that the government is turning
its back from its responsibility.

CREDITS: This presentation template was created by

Slidesgo, including icons by Flaticon, and infographics
& images by Freepik and illustrations by Storyset
BUT
This does not mean, however,
that the government is turning
its back from its responsibility.

CREDITS: This presentation template was created by

Slidesgo, including icons by Flaticon, and infographics
& images by Freepik and illustrations by Storyset
SUMMARY
 NEEDS
WANTS
ECONOMICS WANTS
NONECONOMIC WANTS
BASIC WANTS
CREATED WANTS
 PUBLIC WANTS
PRIVATE WANTS
FREE GOODS
ECONOMIC GOODS
THANK YOU!