ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Defining needs and wants. A need is something necessary to live and function. A want is something that can improve your quality of life. Using these criteria, a need includes food, clothing, shelter and medical care, while wants include everything else.

Detailed explanation-2: -A need is something that is needed to survive. A want is something that an individual desires, but would be able to live without.

Detailed explanation-3: -Businesses make money by satisfying the wants and needs of consumers and other businesses. In this way, wants and needs drive the economy. Wants and needs determine what products and services businesses provide. Businesses provide goods and services to satisfy the wants and needs of businesses and consumers.

Detailed explanation-4: -Needs represents the necessities while wants indicate desires. Needs are important for the human being to survive. As against this, wants are not as important as needs, because a person can live without wants. Needs are those items, that are required for life and does not change with time.