Question

What is difference between need and wants?

Answer 1

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. In economics, we often go through the terms needs and wants, but have you wondered about their differences. Needs point out the something you must have for survival.

On the other hand, 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.

Answer 2

Need: circumstances in which something is necessary, or that require some course of action; necessity.

want: lack or be short of something desirable or essential.