Human wants

HUMAN WANTS

wants are those methods and strategies used by individuals to satisfy  the human needs.

There is also a tendency for the wants to change and develop with human wants are unlimited
Eg :- for the same ailment while one person would take treatment from a government hospital ,  another person would seek treatment from a private medical specialist.

diversity of wants leads to a variety of activities in the economy , food is a common need. to satisfy it ; some individuals take an ordinary meal , while others may choose pizza or Chinese food. these wants give rise to pizza huts and Chinese restaurants. It causes an expansion in the economy.

characteristics of human wants

1. Differ from person to person
2. human wants are unlimited
3.uncountable
4.not essential to fulfill
5. broad
6.business men and society can create human wants
7.secondary

WHAT IS BUSINESS

All commercial activities undertaken by various organizations which produce and supply goods and services with the ultimate purpose of profits and it consists of the commerce and production

DEVELOPMENT STAGES OF BUSINESS

1. Direct production
2. task specialization
3. exchange
4. monetary system
5. industrial economy
6. knowledge based economy

 

DIRECT PRODUCTION

This is the initial stage of business;where human produced goods and services by themselves in order  to fulfill their needs and wants. therefore at this stage, the profit motive did not exist

BARTER SYSTEM

The barter system can be basically identified as the system of exchange goods for goods. the barter system came into effect due to the development in civilization , population, and individual works specialization.

That went into create excess production and made the human compulsory to exchange the excess in order to get goods that are needed or the ones that cannot be produced by the individual family

but this system did not contribute for a longer period due to the following reasons.

  Drawbacks of barter system

1.  no double co-incidence of wants
2. difficult to store
3. difficult to measure
4. difficulties in different payment
5. difficulties in transportation
6. difficulty in dividing
7. chance of change of value