Business Quiz 1: Want and Needs

Needs

Defined as necessary wants Ex. food, shelter, and clothing (basic needs)

Private Wants

Ex. family may want a new car, a company may want a more advanced computer system or an athletic club may want to add a swimming pool.

Public Wants

Ex. highways, drinking water, and education -for the most part local and federal government satisfy these wants.

Unlimited Wants, Limited Resources

Most people have unlimited wants for goods -and services -In the US, Canada, England, and Japan, the majority of consumers have satisfied their lower-order needs so marketers promote goods and services that will appeal to higher order needs

Example

-Marie Van de Mark, a young entrepreneur who started a Jam Enterprise -Created a $2 million company from making promotional items from metal. -Amazon and A/X Armani Exchange liked her products.

Good

-Something that can be weighed or measured -Satisfy your wants and needs for material things that you can see or touch -Ex. bicycles, skates, groceries, and telephones

Services

-Tasks that people or machines perform -Satisfy some of your wants for things that cannot be seen or touch -Ex. cutting hair or teaching guitar lessons are provided for a fee.

Resources

-The more money you make the more goods or services can purchase -However few have enough resources to satisfy all of their wants -A resource is anything that people can use to make or obtain what they need or want -Ex. fuel, labor, timber, and money

Resources con.

-Unlimited wants and limited resources affects individuals, companies, and nations -Resources limit the number of wants people can satisfy. -Ex. you may want a new pair of jeans and a new camera but you may only have enough money to buy one of these things.

Determination of Needs

-goods -services

Want

-is what drives our economy -it helps determine what manufacturers produce and what service industries provide

Types of Wants

-public -private

Lower-Order Needs

Basic Needs