Scope and Sequence 1. Needs and Wants a. Difference of needs and wants b. Hierarchy of needs c. Sectors that influence needs and wants 2. Consumption a. Concept of Consumption b. Sectors/ Factors of Consumption c. Wise Consumerism d. Rights and Responsibilities of Consumers

3. Production a. Definition of Demand b. Factors that affect Demand c. Elasticity of demand

What is the basis of the “market” in producing goods?

Needs and Wants

Learning Targets a. I CAN differentiate needs from wants b. I CAN explain the hierarchy of needs c. I CAN identify the sectors that influence needs and wants

Needs Needs would be defined as goods or services that are required. This would include the needs for food, clothing, shelter, health care.

Wants Wants are goods or services that are not necessary for survival yet we desire or wish to own or take advantage of them. For example, a people need clothes but may not need designer clothes. People do not need toys, entertainment, or cars. People need food but do not have to have steak or dessert.

I. TWO GENERAL CATEGORIES OF WANTS A. NON-ECONOMIC WANTS – WANTS THAT CAN BE SATISFIED BY NON-ECONOMIC GOODS (FREE GOODS) – ARE GOODS THAT ARE UNLIMITED IN QUANTITIES AND HAVE NO PRICE TAGS.   B. ECONOMIC WANTS – WANTS THAT CAN BE SATISFIED BY ECONOMIC GOODS. ECONOMIC GOODS ARE THOSE GOODS AND SERVICES WHICH EXIST IN LIMITED QUANTITIES AND CAN ONLY BE ACQUIRED AT SOME EFFORT AND COST.  

Humanistic-Existential Paradigm Self-actualization Theory Abraham Maslow (1908-1970) Humanistic-Existential Paradigm Self-actualization Theory

Maslow’s Assumptions Human nature is basically good, not evil Normal human development involves the actualization of this inherent goodness

Maslow’s Hierarchy of Needs The basis of Maslow's theory is that human beings are motivated by unsatisfied needs. Certain lower needs must be satisfied before higher needs can be satisfied. As long as we are motivated to satisfy these cravings, we are moving towards growth, toward self-actualization.

MOST NEEDS HAVE TO DO WITH SURVIVAL PHYSICALLY AND Maslow’s Hierarchy of Needs MOST NEEDS HAVE TO DO WITH SURVIVAL PHYSICALLY AND PSYCHOLOGICALLY PHYSIOLOGICAL OR SURVIVAL NEEDS 5

ON THE WHOLE AN INDIVIDUAL CANNOT SATISFY ANY LEVEL Maslow’s Hierarchy of Needs ON THE WHOLE AN INDIVIDUAL CANNOT SATISFY ANY LEVEL UNLESS NEEDS BELOW ARE SATISFIED SAFETY NEEDS PHYSIOLOGICAL OR SURVIVAL NEEDS

Maslow’s Hierarchy of Needs LOVE, AFFECTION, AND BELONGINGNESS NEEDS SAFETY NEEDS PHYSIOLOGICAL OR SURVIVAL NEEDS 7

Maslow’s Hierarchy of Needs ESTEEM NEEDS LOVE, AFFECTION, AND BELONGINGNESS NEEDS SAFETY NEEDS PHYSIOLOGICAL OR SURVIVAL NEEDS 8

MASLOW EMPHASIZES NEED FOR SELF A HEALTHY INDIVIDUAL’S PRIME Maslow’s Hierarchy of Needs NEED FOR SELF- ACTUALIZATION MASLOW EMPHASIZES NEED FOR SELF ACTUALIZATION IS A HEALTHY INDIVIDUAL’S PRIME MOTIVATION 9

Maslow’s Hierarchy of Needs FOR SELF- ACTUALIZATION MASLOW EMPHASIZES NEED FOR SELF ACTUALIZATION IS A HEALTHY INDIVIDUAL’S PRIME MOTIVATION SELF-ACTUALIZATION MEANS ACTUALIZING ONE’S POTENTIAL BECOMING ALL ONE IS CAPABLE OF BECOMING 10

Maslow’s Hierarchy of Needs FOR SELF- ACTUALIZATION ESTEEM NEEDS LOVE, AFFECTION, AND BELONGINGNESS NEEDS SAFETY NEEDS PHYSIOLOGICAL OR SURVIVAL NEEDS 11

Physiological Needs Physiological needs are those required to sustain life, such as: Air Water Food Sleep

Physiological Needs According to Maslow's theory, if these fundamental needs are not satisfied then one will surely be motivated to satisfy them. Higher needs such as social needs and esteem are not recognized until one satisfies the needs basic to existence.

Safety Needs Once physiological needs are met, one's attention turns to safety and security in order to be free from the threat of physical and emotional harm. Such needs might be fulfilled by: Living in a safe area Medical insurance Job security Financial reserves If a person feels threatened, needs further up the pyramid will not receive attention until that need has been resolved.

Social Needs Once a person has met the lower level physiological and safety needs, higher level needs awaken. The first level of higher level needs are social needs. Social needs are those related to interaction with others and may include: Friendship Belonging to a group Giving and receiving love

Esteem Needs Once a person feels a sense of "belonging", the need to feel important arises. Esteem needs may be classified as internal or external. Internal esteem needs are those related to self-esteem such as self respect and achievement.

Esteem Needs External esteem needs are those such as social status and recognition. Some esteem needs are: Self-respect Achievement Attention Recognition Reputation

the need for knowledge and aesthetics Esteem Needs Maslow later refined his model to include a level between esteem needs and self-actualization: the need for knowledge and aesthetics

Self-Actualization Self-actualization is the summit of Maslow's hierarchy of needs. It is the quest of reaching one's full potential as a person. Unlike lower level needs, this need is never fully satisfied; as one grows psychologically there are always new opportunities to continue to grow.

Self-Actualization Self-actualized people tend to have needs such as: Truth Justice Wisdom Meaning

Self-Actualization Self-actualized persons have frequent occurrences of peak experiences, which are energized moments of profound happiness and harmony. According to Maslow, only a small percentage of the population reaches the level of self-actualization.

Journal # 2.1 Using Maslow’s Hierarchy of Needs, create your own hierarchy and list down what or how these needs are created. Rubrics: Content – 10 Creativity – 5