Needs And Wants Flashcards
Basic needs refers to?
Basic needs refer to those things that are essential for survival
Three basic needs?
Food , clothing, shelter
Purchasing power refers to
Purchasing power refers to the ability to buy goods and services
What are wants?
Wants are those goods and services which people would wish to have but is not essential for survival
What are services?
Services are aids that satify those who consume them, though they cannot be touched, that is, they are intangible.
What are goods
Goods are tangible, that is, they can seen and touched.
3 characteristics of wants
Wants are unlimited
Wants grow over time
Wants vary according to individual’s tastes and preferences
What is an enterprise?
An enterprise is a business which takes risk to produce commodities so as to satify needs and wants and make profit
An entrepreneur refers to?
Entrepreneur refers to someone who organises and manages a business, with the aim of making profit
What is the meaning of risk taking
Risk taking means that entrepreneurs venture into a new business even if there is a risk of making losses
Scarcity meaning?
Scarcity refers to the basic economic problem where wants are unlimited but resources available to satisfy them are limited
Opportunity cost means?
Opportunity cost is the sacrifice which arises while making a choice
