Wednesday, January 8, 2014

Needs vs. Wants

1) Needs:
Sweaters, shoes, clothing, food, contact solution and case, phone, underwear, glasses, body wash, soap, deodorant,

Want:
A lot of UGG boots, fancy clothing, make up, perfumes, new cell phones (latest), brand shoes, electronics (games like Xbox), jewelry, big TVs, Internet.

2) People are affected by scarcity regardless of their income because no one in the world can have unlimited time. 
Would you agree with the statement that there is no such thing as a free lunch? Yes, I do because nothing in life is free it comes with a price. Everything is always bought by someone, it may be free to you but it was purchased to be given to you. 

3) Land: Cotton mills, building to work in and material to make the shirts out of.
    Labor: people who run the sewing machines, designers, maintenance crew to keep machines running, crew that helps load and ship shirts.
    Capital: machines to pick cotton, make shirts, and load products, trucks, etc.
    Entrepreneur: people with the plan to create a new business and keep it going. 

4) Companies seek natural resources in other parts of the world because the resources could be better quality and can get material at a cheaper price. 

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