chapter  4
4 Pages

HUMAN NEEDS

The economic organization is directed to meeting the human needs. The household requires a certain quantity of goods and services to satisfy its needs. This quantity is called the demand. As we shall later show, the economy is not concerned with the direct satisfaction of needs. Rather, its aim is to cover the demand. This explains why the term, need, occurs infrequently in the speech of economic life while the term, demand, is used daily.