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Key Differences

Know the Differences & Comparisons

Difference Between Needs and Wants

Last updated on October 21, 2017 by Surbhi S

needs vs wantsWe 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.

Content: Needs Vs Wants

  1. Comparison Chart
  2. Definition
  3. Key Differences
  4. Conclusion

Comparison Chart

Basis for ComparisonNeedsWants
MeaningNeeds refers to an individual's basic requirement that must be fulfilled, in order to survive.Wants are described as the goods and services, which an individual like to have, as a part of his caprices.
NatureLimitedUnlimited
What is it?Something you must have.Something you wish to have.
RepresentsNecessityDesire
SurvivalEssentialInessential
ChangeMay remain constant over time.May change over time.
Non-fulfillmentMay result in onset of disease or even death.May result in disappointment.

Definition of Needs

By the term needs, we mean those requirements which are extremely necessary for a human being to live a healthy life. They are personal, psychological, cultural, social, etc that are important for an organism to survive.

In ancient times the three basic needs of the man are food, clothing and shelter but with the passage of time, education and healthcare also became integral, as they improve the quality of life. They are a person’s first priority as they are the things, that they keep us healthy and safe. Therefore, if needs are not satisfied in time, it may result in illness, inability in functioning properly or even death.

Definition of Wants

In economics, wants are defined as something that a person would like to possess, either immediately or at a later time. Simply put, wants are the desires that cause business activities to produce such products and services that are demanded by the economy. They are optional, i.e. an individual is going to survive, even if not satisfied. Further, wants may vary from person to person and time to time.

We all know that human wants are unlimited while the means to satisfy those wants are limited. Hence, all the wants of an individual cannot be met and they must seek for alternatives.

Key Differences Between Needs and Wants

The following points are noteworthy so far as the difference between needs and wants are concerned:

  1. The term ‘needs’ is defined as an individual’s basic requirement that must be fulfilled, in order to survive. Wants are described as the goods and services, which an individual like to have, as a part of his caprices.
  2. An individual needs are limited while his wants are unlimited.
  3. Needs are something that you must have, in order to live. On the contrary, wants are something that you wish to have, so as to add comforts in your life.
  4. Needs represents the necessities while wants indicate desires.
  5. Needs are important for the human being to survive. As against this, wants are not as important as needs, because a person can live without wants.
  6. Needs are those items, that are required for life and does not change with time. As opposed to, wants are those items, that are desired by an individual either right now or in future. Therefore, wants might change over time.
  7. As needs are essential for life, non-fulfillment may lead to illness or even death. In contrast wants are not essential for living and so non-fulfillment, does not have a great impact on a person’s life, however, disappointment may be there.

Conclusion

With the above discussion, on these two concepts of economics, it concluded that needs and wants are separate forces, that compels actions for satisfaction. If needs are not met on time, the survival of a person is at stake whereas wants are something which a person is craving for, that does not challenge a person’s survival if not satisfied.

So, needs can be distinguished from wants on the basis of their level of importance. Hence, the distinction is between what is required and what is desired.

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Comments

  1. TJ Bezuidenhoudt says

    April 19, 2018 at 11:07 pm

    Nice. Thank you.

    Reply
  2. NEEMA GAMBO says

    September 19, 2018 at 5:18 pm

    very helpful and comprehensive

    Reply
  3. Susan says

    May 21, 2019 at 5:11 pm

    Thank you

    Reply
  4. Neil de silva says

    June 13, 2019 at 10:02 am

    Good explanation

    Reply
  5. ANISH KUMAR D says

    November 22, 2019 at 1:08 pm

    very helpful and comprehensive.

    Thank you..

    Reply
  6. William says

    February 22, 2020 at 8:34 am

    Thanks for the clear explanation, and thanks for your hard work.

    Reply
  7. Hillary Wordu says

    June 14, 2020 at 9:04 pm

    Good and helpful explanation and analysis

    Reply
  8. Rajendra Pandey says

    June 18, 2020 at 3:09 am

    Short and precise explanation

    Reply
  9. Yuan Dong says

    June 18, 2020 at 7:27 pm

    It’s very detailed and easy to understand

    Reply
  10. Akubo NY says

    September 4, 2020 at 11:38 pm

    Very clear and with simple English.
    Kudos.

    Reply
  11. Faisal Baba says

    September 30, 2020 at 12:17 pm

    very nice tips and helpful

    Reply
  12. Muhammad Mumtaz says

    October 25, 2020 at 3:55 am

    quite comprehansive.

    Reply
  13. Tharanga says

    November 14, 2020 at 6:16 am

    very clear and simple English and helpful my studies.
    Thank you

    Reply
  14. Niza says

    January 17, 2021 at 2:43 pm

    Thank you I have an Idea now

    Reply
  15. Methumli Nuhansa says

    January 28, 2021 at 1:19 pm

    This very useful and Thank you very much for short and sweet explanation

    Reply
  16. afira sundas says

    February 1, 2021 at 10:32 pm

    It is well written article. It helps prioritising things incase of scarce resources

    Reply
  17. Josephine Paola Amoh says

    February 3, 2021 at 4:32 am

    Vividly explained. Very useful and simple English 👌

    Reply

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