Question

Why do economists avoid making the distinction between wants and needs?

A. Every individual has exactly the same set of needs. Economists consider individual wants because they differ from one individual to another.
B. The term need is subjective making it difficult to distinguish between something someone wants and something they need.
C. Individual needs do not exist so it is necessary to only consider individuals' wants.
D. Individual wants are limited making it easier for economists to address this concept.

Answer 1

Answer:

B.  The term need is subjective making it difficult to distinguish between something someone wants and something they need.              

Explanation:

According to the economist, "need" is quite subjective in meaning. To them, 'want' is something that any individuals desires to have it whether they carry any value or not. While 'need' is something that is necessary to live or to survive a healthy life. Thus economist find it difficult to make a distinction between the word need and want.

The correct option is (B).