Question:
What is the fundamental difference between needs and wants as analysed in Economics?
(1) Needs are essential for survival while wants are desires only.
(2) Wants are essential for survival while needs are desires only.
(3) Needs and wants are considered to be synonymous in Economics.
(4) Wants can be satisfied with limited resources while needs cannot be satisfied with limited resources.
(5) Needs are changing over time while wants do not change over time.
Correct Answer:
(1)
Answer Explanation:
Needs refer to basic requirements for human survival (e.g., food, shelter), whereas wants are specific desires that are not strictly necessary for survival but provide additional utility.
Topic: Introduction Year: 2023
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