Needs, Wants & Scarcity
Understanding Economic Choices Year 11 Economics Lesson 3
Rāranga Kupu Hou (New Word List)
Needs: Things that people or organisations must have to continue, grow or change Wants: Those things that we would like to have but can survive without Scarcity: The gap between limited resources and unlimited wants
Think About It
What are some things you absolutely cannot live without? What are some things you really want but could survive without?
What Are Needs?
Essential for survival and basic functioning Cannot be eliminated without serious consequences Examples: Food, water, shelter, clothing, healthcare For students: Education, safety, family support
What Are Wants?
Things that improve quality of life but aren't essential Can be delayed or eliminated without serious harm Often influenced by culture, peers, and advertising Examples: Latest smartphone, designer clothes, entertainment subscriptions, luxury cars
Needs vs Wants: Real Examples
{"left":"Food to prevent hunger\nDesigner brand lunch\nBasic clothing for weather protection\nLatest fashion trends","right":"Safe housing\nLuxury apartment with pool\nHealthcare when sick\nCosmetic procedures"}
Sorting Activity
Work in groups of 3-4 Sort the provided items into 'Needs' and 'Wants' Discuss any items your group disagrees about Be prepared to justify your choices
What Is Scarcity?
The fundamental economic problem Limited resources vs unlimited wants Forces us to make choices Affects individuals, businesses, and governments Examples: Time, money, natural resources, skilled workers
Scarcity in Your Life
Think about your own resources: How much money do you have to spend each week? How much free time do you have each day? Can you have everything you want with these limited resources?
How Scarcity Forces Choices
Can't have everything we want Must prioritize our most important needs and wants Every choice has an opportunity cost Example: Buying a game means less money for clothes Time example: Studying means less time for socializing
The Scarcity Cycle
Exit Ticket
Answer these questions before you leave: 1. What is the difference between a need and a want? 2. Is a smartphone a need or a want? Explain why. 3. What is scarcity? 4. Why can't we have everything we want?