Human Wants — Flashcards

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Wants are desires backed by money and willingness to purchase. A desire becomes a want only when there is purchasing power and the intention to buy.

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Formation of a Want: Desire for a good or Service + Money to purchase and willingness to purchase → Want for a good or a service. A desire alone is not enough; money and willingness to buy are needed.

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A beggar may desire to have a car, but this desire is not backed by adequate money. Since there is no purchasing power, it is a desire, not a want.

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If a rich man desires to have a car and is willing to purchase it, the desire becomes a want because it is backed by money and buying intention.

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Human wants are countless in number and are varied in kind. This shows that wants do not end and keep changing from person to person.

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Wants are unlimited. As soon as one want is satisfied, another takes its place. This endless circle continues throughout life.

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Resources are scarce. Land, labour, capital, and entrepreneurship are used to satisfy wants, but they are limited and cannot satisfy all wants.

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All wants cannot be satisfied because wants are unlimited but the resources to satisfy them are scarce. A single want can be satisfied, but not all wants together.