The document explores the distinction between needs and wants in economics, defining needs as essential requirements for survival and wants as desires that enhance comfort but are not necessary for life. It emphasizes that while needs are limited and constant, wants are unlimited and can change over time. The conclusion highlights that unmet needs can threaten survival, whereas unmet wants do not have the same impact on a person's existence.

1. By
Col Mukteshwar Prasad(Retd)
Needs and Wants
(Economic View)

3. Difference Between Needs and
Wants
 We all know that economics is a social science, which deals
with
 production,
 distribution and
 consumption functions.
 It is all about making choices regarding the allocation of scarce
resources, so as to make their best possible use and satisfy
human wants and needs.
 From economics point of view
 While needs point out the something you must have for survival,
 wants refers to something which is good to have, but not essential
for survival
 For the purpose of spending and saving money wisely, every
person must know the difference between needs and wants.

4. Comparison Chart
Basis for Comparison Needs Wants
Meaning
Needs refers to an
individual's basic
requirement that must be
fulfilled, in order to
survive.
Wants are described as the
goods and services, which
an individual like to have,
as a part of his caprices.
Nature Limited Unlimited
What is it? Something you must have.
Something you wish to
have.
Represents Necessity Desire
Survival Essential Inessential
Change
May remain constant over
time.
May change over time.
May result in onset of May result in

5. Definition of Needs
 By the term needs, we mean those requirements which are
extremely necessary for a human being to live a healthy life.
 They are important for an organism to survive and may be
 personal,
 psychological,
 cultural,
 social, etc that
 In ancient times the three basic needs of the man were
 food,
 clothing and
 shelter
 For improvement of quality of life now additional important needs are
 education and
 healthcare
 They are a person’s first priority as they are the things, that they keep
us healthy and safe.
 Therefore, if needs are not satisfied in time, it may result in
 illness,
 inability in functioning properly or
 even death.

6. Definition of Wants
 In economics, wants are defined as something that a person would like to
possess,
 either immediately or
 at a later time.
 Simply put, wants are the desires that cause business activities to produce
such products and services that are demanded by the economy.
 They are optional, i.e. an individual is going to survive, even if not
satisfied.
 Further, wants may vary from
 person to person and
 time to time.
 We all know that human wants are unlimited while the means to satisfy
those wants are limited.
 Hence, all the wants of an individual cannot be met and they must seek
for alternatives.

7. Key Differences Between Needs and
Wants
 The term ‘needs’ is defined as an individual’s basic requirement that must
be fulfilled, in order to survive.
 Wants are described as the goods and services, which an individual like
to have, as a part of his caprices.
 An individual needs are limited while his wants are unlimited.
 Needs are something that you must have, in order to live.
 On the contrary, wants are something that you wish to have, so as to add
comforts in your life.
 Needs represents the necessities while wants indicate desires.
 Needs are important for the human being to survive.
 As against this, wants are not as important as needs, because a person
can live without wants.
 Needs are those items, that are required for life and does not change with
time.
 As opposed to, wants are those items, that are desired by an individual
either right now or in future.
 Therefore, wants might change over time.
 As needs are essential for life, non-fulfillment may lead to illness or even
death.
 In contrast wants are not essential for living and so non-fulfillment, does

8. Conclusion
 Hence it can be concluded that needs and wants are separate
forces, that compels actions for satisfaction.
 If needs are not met on time, the survival of a person is at
stake whereas wants are something which a person is
craving for, that does not challenge a person’s survival if
not satisfied.
 So, needs can be distinguished from wants on the basis of their
level of importance.
 Hence, the distinction is between what is required and what
is desired.