Economic & Management Sciences - Term 2 - Week 9

Needs are essential items required for survival, such as food, water, shelter, and clothing. Wants, on the other hand, are non-essential items that enhance our quality of life, like smartphones, designer clothes, or luxury vacations. Understanding the difference between needs and wants is crucial for making informed financial decisions.

Consider the following examples: A person needs food to survive, but they may want a specific brand of chocolate. Similarly, while everyone needs clothing, they might want a trendy outfit. By analyzing these examples, students can see how wants can often be prioritized over needs when budgeting.

In groups, students will discuss various items they encounter daily and categorize them as needs or wants. Each group will present their findings to the class, explaining their reasoning. This activity encourages critical thinking and helps students articulate their understanding of the concepts.

Students will create a chart that lists at least five needs and five wants. They should illustrate their chart with drawings or images and present it to the class. This project will help reinforce their understanding and allow for creative expression.

• A new video game
• Water
• A luxury car
• Designer shoes

Answer: Water

Water is essential for survival, making it a need, while the other options are wants.

• Needs are more expensive than wants
• Needs are essential for survival, while wants are not
• Wants are always more important than needs
• Needs can be purchased, wants cannot

Answer: Needs are essential for survival, while wants are not

This statement accurately defines the core difference between needs and wants.

Answer: A smartphone; it is classified as a want because it is not essential for survival.

Smartphones enhance communication and entertainment but are not necessary for basic survival.

• Food
• Shelter
• A new bicycle
• Clothing

Answer: A new bicycle

A new bicycle is a luxury item that is not necessary for survival, making it a want.

Answer: It helps in making better financial decisions and prioritizing spending.

Understanding the difference allows individuals to allocate resources effectively.

• Healthcare
• Internet access
• Clothing
• Food

Answer: Internet access

While useful, internet access is not essential for survival, unlike the other options.

• It makes budgeting unnecessary
• It helps prioritize spending
• It increases spending on wants