Topic 1: Introduction to the course. Need, Want, Economic problem & Scarcity

To better understand the topic, please start the course from the start and go step by step
Please do take full advantage of the weekly "Talk with the Teacher" if you have any questions
Do share with all your friends to help them (Don't be mean)

1.      Need

Needs are the basic necessity, goods and services which are essential in life.

For example: food, shelter and clothing, a human being cannot live without food, water or shelter.

2.      Want

A want is a good or a service which people wish to have, these are not essential for living but are human desires, and these wants are always unlimited.

For example: a new phone, a car, a watch. Human beings can live without these wants but they wish to have it.

3.      Economic problem

Human beings have unlimited wants but the resources to produce these wants (goods and services) are limited. Hence this creates a shortage.

For example: a government would always want to provide good houses and cars to all its people but it is extremely difficult to arrange for resources to produce cars for all the population.

4.      Scarcity

Lack of resources to fulfill population’s needs and want

For example: when the agricultural resources are not enough to provide food to everyone in the country.

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