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Section 1: Understanding Needs And Wants
Page 5: Needs And Wants 1
Curriculum Link: The diff erence between needs and wants and why choices need to be made about how limited resources are used (ACHEK001) Elaboration: Listing all the items they would like to have and categorising these items as a need or a want. Information: There are many things that we would like to have, but only some of these things are necessary for us to stay alive and stay healthy. These necessary things are called our needs and include: fresh water, clean air, food, shelter, love and warmth. The remaining things that we would like to have are not essential for our survival. We call these things our wants. Anyone who is able to satisfy a need or a want is called a consumer. All of us are therefore consumers. Consumers satisfy their needs and wants mainly by obtaining goods and services. Goods are physical items that can be seen and touched, such as: books, iPods, Lego, etc. Services are activities that people do for others, such as: cleaning, gardening and dog-sitting. Anyone who provides goods or services is called a producer.
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Answers:
1. Answers will be unique for each student and may include items such as: an iPod, computer games, skateboard, new shoes and other personal wants. 2. Answers could include items such as: water, oxygen, food, shelter, clothing, warmth and love. 3. Students circle any items which crossover both lists. Reasons for similarities and diff erences will vary. If there is some cross-over this might indicate that the student values a healthy lifestyle or is satisfi ed with the simple things in life. Students with no cross-over might indicate that they already have most of the items in list 2 so they wanted additional items.
Page 6: Needs And Wants 2 Curriculum Link: The diff erence between needs and wants and why choices need to be made about how limited This is a Ready-Ed Publications' resources are used (ACHEK001) Elaboration: Listing all the items they would like to have and categorising these items as a need or a want.book preview.
Answers:
1. Needs are things that are essential for good health and survival. Wants are those things that people would like to have but are not essential for their survival. 2. Students indicate which grocery items are needs, such as: fresh fruit and vegetables, bread, cereal, meat and milk. Luxury items, such as: chocolate, soft drink, hair-spray and chewing gum should be marked as wants. 3. Some grocery items may be diffi cult to classify because food has been identifi ed as a need that is essential to one’s health and survival. However, some food items, such as chocolate or cake, could be classed as luxuries that one could live without.
Page 7: Goods And Services
Curriculum Link: The diff erence between needs and wants and why choices need to be made about how limited resources are used (ACHEK001) Elaboration: Listing all the items they would like to have and categorising these items as a need or a want.
Answers:
Consumers 1. obtain goods and services from producers in order to satisfy their needs and wants. 2. A good is a physical item that can be seen and touched, e.g. an iPod. A service is an activity that someone does for someone else, e.g. mowing the lawn.Go to www.readyed.net. 3. Getting a haircut Service Buying groceries Good Catching a bus Service Dining at restaurant Good or Service Going to school Service Buying a computer Good
Section 1 Understanding Needs And Wants
4. Scenarios, such as dining at a restaurant, could illustrate the consumption of both goods and services because it involves purchasing food which is a good but you are also paying for someone to cook the food and serve it to you (the chef and the waiter). This is a service. 5. Answers will be unique for each student.
Examples include:
Food: bread, butter, school canteen.
Clothing: pyjamas, school uniform.
Transport: car, bus, train, petrol.
Household: toaster, fridge, television.
School: books, pen, paper, teacher.
Technology: mobile phone, computer.
Page 8: Personal And Community Needs And Wants 1
Curriculum Link: The diff erence between needs and wants and why choices need to be made about how limited resources are used (ACHEK001) Elaboration: Listing all the items they would like to have and categorising these items as a need or a want. Information: All people have needs and wants. The kinds of things that an individual can benefi t from, such as: a bicycle, a skateboard, a can of soft drink or a new hairstyle are referred to as personal needs and wants. In most cases these goods and services can be obtained from businesses or retailers. Goods and services that many people in society can benefi t from are called community needs and wants. For example, roads, footpaths, public transport, rubbish collection and schools are available to be shared by all members of the community. Usually the government is responsible for providing and maintaining them with money collected from taxes, fares and tolls.
Answers:
Personal Wants Community Wants
What are they? Needs and wants that individuals can benefi t from. Needs and wants that many members of society can benefi t from. Who provides them? Businesses and retailers. The government. What are some examples? iPod, bicycle, soft drink.
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Roads, parks, schools, hospitals.
Page 9: Personal And Community Needs And Wants 2
Curriculum Link: The diff erence between needs and wants and why choices need to be made about how limited resources are used (ACHEK001) Elaboration: Listing all the items they would like to have and categorising these items as a need or a want. Information: Max woke up at 7am to the sound of his alarm clock. He only snoozed once before getting out of bed and making his way to the bathroom. Max had a quick shower, dried himself and then brushed his teeth. He got dressed, combed his hair and then went to the kitchen to make some breakfast. After eating two slices of toast with Vegemite and drinking a glass of orange juice, Max said goodbye to his family, picked up his bag and then set off for school. He only had a short walk down the footpath and then through the park. As he reached the cross-walk in front of the school, the attendant asked the students to wait while an ambulance went past. The attendant then Go to www.readyed.net. stopped the other traffi c while the students crossed the road. Max waited eagerly for the bell to ring. Friday was his favourite day at school and he had a great line up of subjects ahead.
Section 1 Understanding Needs And Wants
Answers:
Personal Wants Community Wants
• alarm clock bed• shower• • towel • toothbrush and toothpaste comb• clothes• toaster• bread • • Vegemite • orange juice • school bag • water is provided to homes through a system of pipes • electricity to use the toaster • footpath • park • cross-walk attendant road• • ambulance service school•
Page 10: Needs And Wants In My Community
Curriculum Link: The diff erence between needs and wants and why choices need to be made about how limited resources are used (ACHEK001) Elaboration: Listing all the items they would like to have and categorising these items as a need or a want. Answers: Students should include pictures of community needs and wants, such as: hospitals, schools, roads, footpaths, ovals/ reserves, shopping centres, libraries, skate parks and/or other services and facilities that would benefi t many members of the community.
Page 11: Debating Needs And Wants
Curriculum Link: The diff erence between needs and wants and why choices need to be made about how limited resources are used (ACHEK001) Elaboration: Debating whether one person’s need is another person’s need. Information: The diff erence between needs and wants appears to be fairly straightforward. Needs are those things that are basic to our survival, such as: food, clothing and shelter, while wants are all the extras that we would like to have, but are not necessary in order to live. When we consider specifi c items, however, the
diff erence is not always clear. For example, is a new pair of shoes a need or a want? The answer to this question depends on a This is a Ready-Ed Publications' number of factors, including what kind of shoes they are, how many pairs of shoes the person buying them already has, in what kind of environment the shoes will be worn, book preview. and how expensive the shoes are. When engaging in this type of analysis it is possible to see how one person’s need could be another person’s want. Answers: Essentially the classifi cation of a need or a want is a matter of opinion as long as the students can justify their positions. Following are examples of the kind of debate that could be generated. A hamburger – could be classed as a need if it satisfi ed the requirements of a simple meal (bread, meat patty and salad). However, if a person already had food in the fridge but decided they would like to visit a fast food outlet, then the hamburger could be classed as a want. A new jacket – could be classifi ed as a need if a person lived in a cold climate and used it regularly to keep warm. However, if the person already had a number of stylish jackets then it could be classed as a want. Education – could be classed as a need in order for societies to progress. People can survive without an education. Their opportunities, however, may be limited. A mobile phone – this kind of device may be considered a need, particularly in today’s business world. However, prior to the 1990s most people in society did not have a mobile phone and survived. This may generate discussion about how needs and wants may change over time. Go to www.readyed.net.
Page 12: The Economy Made Simple
Curriculum Link: The diff erence between needs and wants and why choices need to be made about how limited resources are used (ACHEK001) Elaboration: Debating whether one person’s need is another person’s need.
Section 1 Understanding Needs And Wants
Information: A simple way of understanding the economy is to think of it as a system consisting of diff erent parts that work together to achieve a common goal. The diagram below shows the two main parts of an economy, which are: consumers and producers. Consumers consist of all the people who demand and use goods and services. Producers consist of people who supply goods and services. The common goal that they share is to satisfy the needs and wants of people in society.
Answers:
1. A system is a group of diff erent parts which work together to achieve a common goal. 2. 2a. Consumers and producers are the two main parts of an economy. 2b. The common goal of consumers and producers is to satisfy the needs and wants of people in society. In an economy, 3. consumers consist of all the people who demand and use goods and services while producers consist of anyone who supplies goods and services. 4. Answers will vary. An example is: In my family there is a demand for tennis equipment which is supplied by Number
One Sports Store; or In my family there is a demand for education which is supplied by Baronia Heights Primary
School.
Page 13: The Economic Problem 1
Curriculum Link: The diff erence between needs and wants and why choices need to be made about how limited resources are used (ACHEK001)
CONSUMERS DEMAND goods and services SUPPLY goods and services PRODUCERS
Elaboration: Explaining why individuals cannot have all the items they want and therefore must make a choice (the concept of scarcity, that is unlimited needs and wants compared to This is a Ready-Ed Publications' limited resources). Information: Although it would be nice, most people realise that they will never be book preview. able to fully satisfy all of their wants. This is because there are no limits to what we want. Even after we are able to satisfy certain wants, others will often arise. For example, a person who buys a gaming console will probably want to buy games to play on it. Depending on the type of games that they buy, they may then also want accessories, such as additional controllers and steering wheels. People’s wants also change over time. For example, the kinds of things that you want now are likely to be diff erent to what you wanted when you were 5 years old and by the time you turn 15 they are very likely to be diff erent again. Other factors that infl uence what people want include the time of year, advertising, peer pressure and aff ordability. Compared to our unlimited wants, the resources that we have to satisfy them are limited or scarce. Some people refer to this situation as ‘the economic problem’ because it creates a dilemma where people are forced to decide between their various competing wants. For example, think about all your personal wants and then consider how many of these goods and services you can actually aff ord. You have probably even had to choose between buying one item or another in the past. In the same way, governments often have to decide how limited resources will be allocated to meet the unlimited wants Go to www.readyed.net. of the community. For instance, if too much money is spent on improving hospitals, there may be less money to spend on education. Making choices like this is diffi cult because both services are important for and valued by the community.
Section 1 Understanding Needs And Wants
While most people understand what they can and can’t aff ord with the money that they have, they sometimes forget that it is not just money that is limited. The quantity of natural, cultural and human resources available to satisfy our needs and wants on a long-term basis is also scarce. We must therefore make sure that resources are used in a sustainable way. This means that we must decide on the most effi cient ways of using resources and be careful not to waste them so that they will be available for both current and future generations to satisfy their needs and wants.
Making choices about how to allocate 4. resources is diffi cult for the government because diff erent needs, such as This is a Ready-Ed Publications' transport, health and education, are seen as being equally important but there may not be suffi cient resources to allocate equal spending in order to make book preview. a diff erence in any one area. 5. People need to decide on the most effi cient ways of using resources and be careful not to waste them so they will be available for both current and future generations to satisfy their needs and wants.
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Page 14: The Economic Problem 2
Curriculum Link: The diff erence between needs and wants and why choices need to be made about how limited resources are used (ACHEK001) Elaboration: Explaining why individuals cannot have all the items they want and therefore must make a choice (the concept of scarcity, that is unlimited needs and wants compared to limited resources).
Answers:
1. ‘Scarcity’ refers to a limited amount or supply of resources.
land labor capital entrepreneurship
food clothing shelter security comfort medicine jewellery aff ection transportation good health children variety in diet knowledge convenience recognition travel wisdom recreation control respect entertainment love
Limited Resources And Time
Virtually Unlimited Human Wants
2.
3.
Page 15: Consumer Choices And Opportunity Cost
‘The economic problem’ refers to the limited resources available to satisfy virtually unlimited needs and wants. This is refl ected by the scales being weighed down by the wants. Answers will be unique to each student. For example a student may recall a time when they liked two diff erent pairs of shoes but were only allowed to buy one. Curriculum Link: The diff erence between needs and wants and why choices need to be made about how limited resources are used (ACHEK001) Elaboration: Explaining why individuals cannot have all the items they want and therefore must make a choice (the concept of scarcity, that is unlimited needs and wants compared to limited resources). Information: One of the key problems faced by consumers is that they are unable to aff ord every good and service that they would like to buy. Decisions therefore need to be made about which wants to satisfy immediately and which to give up or delay. Those things that consumers choose to give up are referred to as the ‘opportunity cost’ because by spending their money on one thing, they have lost the opportunity to buy something else. For example, imagine that a person who has only $20 left to spend is choosing between going to the movies that day and buying grocery items for the family’s evening meal. If he/she chooses to go to the movies then the ‘opportunity cost’ will be dinner for the family. If he/she chooses to provide dinner for the family then the ‘opportunity cost’ will be the movie.
Section 1 Understanding Needs And Wants
Every consumer choice has positive or negative outcomes. When making a decision it is necessary to look at all the benefi ts and costs that go along with each choice. The best choices are the ones that result in the most benefi ts and the fewest costs. Wise consumers use this process to help prioritise their needs and wants. They understand that the decisions that they make can have a signifi cant impact on their quality of life.
Answers:
1. An ‘opportunity cost’ is anything that consumers must choose to give up in order to have something else. 2. The ‘opportunity cost’ for George was his $1 bus fare. The ‘opportunity cost’ for
Lucy was having a birthday party. 3. The benefi ts of George’s decision was that he was able to immediately satisfy his desire for an ice cream and possibly cool down while consuming it. However, as a result of choosing to give up his bus fare, George might have needed to walk home, particularly during the hottest part of the day. Lucy benefi ted from her decision because she got to see her favourite band. However, she was unable to celebrate her birthday with friends.
Page 16: Needs And Wants Word Search Curriculum Link: The diff erence between needs and wants and This is a Ready-Ed Publications' why choices need to be made about how limited resources are used (ACHEK001)
