Karthikeyan

Needs vs Wants

• Needs = things you must have to liveExample: water, food, clothes, shelter

• Wants = things you like to haveExample: phone, games, fancy clothes, snacks, etc.

Your needs list is short, but your wants list can go on forever.

Why are people still poor if they need only a few things?

Because:

• Wants are unlimited – people always want more.

• Money is limited – no one has enough to buy everything they want.

• Some people don’t even have enough to buy their basic needs, so they become poor.

  
  

Is the main problem “not enough money”?

The passage says no, money isn’t the real problem.

Even if money increases, the actual resources (food, houses, clothes, workers, land) are still limited. So the true economic problem is scarcity – limited resources but unlimited wants.