ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A need is something that is needed to survive. A want is something that an individual desires, but would be able to live without. A primary distinguishing feature of a need is that it is necessary to sustain life.

Detailed explanation-2: -Needs and wants are an important part of an economy. Needs are things that people require to survive. Food, water, clothing, and shelter are all needs. If a human body does not have those things, the body cannot function and will die. Wants are things that a person would like to have but are not needed for survival.

Detailed explanation-3: -Production, consumption and capital formation are called the basic economic activities of an economy.

Detailed explanation-4: -These are: adequate nutritional food, water and protective housing, a non-hazardous physical and work environment, appropriate healthcare, security in childhood, significant primary relationships, physical and economic security, safe birth control and child bearing, and basic education.

Detailed explanation-5: -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.