One of the most basic A Want: A Need:concepts of economics is: is something you would like is something you have to want vs need. to have. It is not absolutely have, something you cantWants: necessary, but it would be a do without. A good exampleThings that we can live good thing to have. A good is food. If you dont eat, youwithout, but like to have. example is music. Now, wont survive for long. Many some people might argue people have gone daysA Need: that music is a need because without eating, but theyIs something thought to be they think they cant do eventually ate a lot of food.a necessity or an essential without it. But you dont You might not need a wholeitem required for life e.g. need music to survive. You lot of food, but you do needfood, water and shelter. do need to eat. to eat.A Want: Needs:Is something unnecessary but Goods and services which consumers need to survive.desired or an item which These include fresh water, clothing and food.increase the quality of living. Wants:Needs: Goods and Services which consumers can live without,Things we cannot live without. but would like to have.
Maslows hierarchy of needs is a theory in psychology proposed byAbraham Maslow in his 1943 paper A Theory of Human Motivation.
Physiological Needs:These are self-explanatory; they are the literal requirements for human survival. If theserequirements are not met, the human body simply cannot continue to function.Breathing, Nutrition, Homeostasis, Human interaction.Air, water, and food are metabolic requirements for survival in all animals, includinghumans.Clothing and shelter provide necessary protection from the elements.The intensity of the human instinct in maintaining a birth rate adequate to survival of thespecies.
Safety Needs:With their physical needs relatively satisfied, the individuals safety needs takeprecedence and dominate behavior. These needs have to do with peoples yearning for apredictable orderly world in which perceived unfairness and inconsistency are undercontrol, the familiar frequent and the unfamiliar rare. In the world of work, these safetyneeds manifest themselves in such things as a preference for job security, grievanceprocedures for protecting the individual from unilateral authority, savings accounts,insurance policies, reasonable disability accommodations, and the like.Safety and Security needs include:•Personal security•Financial security•Health and well-being•Safety net against accidents/illness and their adverse impacts.
Belongingness and love needs:After physiological and safety needs are fulfilled, the third layer of human needs are socialand involve feelings of belongingness. This aspect of Maslows hierarchy involvesemotionally based relationships in general, such as:Friendship - Intimacy - FamilyHumans need to feel a sense of belonging and acceptance, whether it comes from a largesocial group, such as clubs, office culture, religious groups, professional organizations,sports teams, gangs, or small social connections (family members, intimate partners,mentors, close colleagues, confidants). They need to love and be loved.In the absence of these elements, many people become susceptible to loneliness, social anxiety, and clinicaldepression. This need for belonging can often overcome the physiological and security needs, depending on thestrength of the peer pressure; an anorexic, for example, may ignore the need to eat and the security of health for afeeling of control and belonging.
Esteem Needs:All humans have a need to be respected and to have self-esteem and self-respect. Alsoknown as the belonging need, esteem presents the normal human desire to be acceptedand valued by others. People need to engage themselves to gain recognition and have anactivity or activities that give the person a sense of contribution, to feel accepted and self-valued, be it in a profession or hobby.Most people have a need for a stable self-respect and self-esteem. Maslow noted twoversions of esteem needs, a lower one and a higher one. The lower one is the need for therespect of others, the need for status, recognition, fame, prestige, and attention. Thehigher one is the need for self-respect, the need for strength, competence, mastery, self-confidence, independence and freedom. The latter one ranks higher because it rests moreon inner competence won through experience. Deprivation of these needs can lead to aninferiority complex, weakness and helplessness.
Self-actualization:“What a man can be, he must be.”This forms the basis of the perceived need for self-actualization. This level of needpertains to what a persons full potential is and realizing that potential. Maslow describesthis desire as the desire to become more and more what one is, to become everythingthat one is capable of becoming. This is a broad definition of the need for self-actualization, but when applied to individuals the need is specific. For example oneindividual may have the strong desire to become an ideal parent.
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