Satisfaction of Human Wants

Syllabus tag: KCSE | Business Studies | Form 1 | Topic 3 Human Wants

Lesson objectives

By the end of this topic, you should be able to:

• Classify human wants and state their characteristics.
• Classify goods under the standard categories.
• Describe economic resources and their characteristics.
• Explain scarcity, choice and opportunity cost.

Summary

Human wants are unlimited while the resources to satisfy them are scarce, so choice is unavoidable and every choice has an opportunity cost — the next best alternative forgone. Wants are basic or secondary; goods are classified as free or economic, producer or consumer, perishable or durable, public or private, intermediate or finished.