Needs & Need Satisfaction (The multiplicity of human needs (The number…
Needs & Need Satisfaction
The multiplicity of human needs
The number of identifiable needs is infinite
Maslow’s hierarchy of needs
A need may have a physical, psychological/social origin
As society satisfies one need. A new one comes into existence
Human existence depends on the satisfaction of needs
Society’s limited resources
The resources of any community are scarce, and can easily be exceeded by its needs
Resources are the basic inputs in the production of products and services (Production factors)
There are limited resources to available to satisfy all needs
Natural resources (production factor of land)-agricultural land, industrial sites, residential stands, minerals and metals, forests, water etc.
Supply of natural resources cannot be increased
Human effort is needed to process into need satisfying products
Size of labour force is determined by size of population, level of education and training, the proportion of women in the labour force and the retirement age
Human resources (labour) include the physical and mental talents and skills of people employed to create products and services.
Capital products usually have a long working life
Owners of capital are remunerated in the form of interest
Includes buildings, computers & other products , produced for making possible the further production of the final consumer product.
Take the risk of providing their knowledge & capital in setting up a business with the prospect of being rewarded with profits.
Refers to the capacity of individuals who accept the risks involved in providing products & services for their society
The production factor of entrepreneurship is scarce