INTRODUCTION TO ECONOMICS, CONCEPT OF NEEDS AND WANTS.

Name; Hasnain Nawaz
Surname : Shaikh
ROLL NO: 16 CH 42
B.E: Chemical Engineering (In Progress).
Mehran University of Engineering and Technology
Jamshore, ISO 9001 Certified.

1. Presentation of engineering economics Presented by# 16 ch 42. Presented to# sir ashfaq pirzada .

2. Introduction to Economics

3. AGENDA What is Economics? Needs – Wants Factors of Production

4. What is Economics

5. A social science that studies and influences human behavior. Economics is the study of what constitutes rational human behavior for the fulfillment of their needs and wants. What is Economics?

6. Economics Economics is derived from two Greek words Oikos - a House Nemein - to Manage Means “ Managing an Household ” Emphasis Significant contribution Wealth Adam Smith Welfare Alfred Marshall Scarcity Lionel Robbins growth Paul Samuelson

7. Father of Economics Adam smith (1723 - 1790), Book “An Inquiry into Nature and Causes of Wealth of Nations” (1776) defined economics as, “ the practical science of production , consumption distribution of wealth ”

8. NEEDS AND Wants

9. NEEDs VS Wants Needs are defined as, “the goods or services that are necessarily required for survival.” Or Needs refers to an individual's basic requirement that must be fulfilled, in order to survive . Can be Objective/Physical or Subjective Objective needs - food, shelter, sleep Subjective needs – affection, acceptance, self-esteem

10. Ten Fundamental Human Needs Protection Creation Understanding Participation Identity freedom affection

11. Objective Needs

12. NEEDs VS Wants Wants are described as, “the goods and services, which an individual like to have or would like desire. OR Wants are goods or services that are not necessary but that we desire or wish for . People have UNLIMITED WANTS with LIMITED RESOURCES.

13. Abraham Maslow Professor of Psychology Columbia University Focuses on describing the stages of growth in humans (April 1, 1908 – June 8, 1970)

14. The Hierarchal Model Being Need Deficit Needs

15. Physiological Needs Mostly, literal requirements for human survival If not met, the human body cannot function Metabolic needs – air, water, food, rest Food Water Rest Breathing

16. Physiological Needs

17. Safety Needs Once physical needs are met, safety needs take over. It includes, Safety of Haealth . Financial, job security, security of employement etc. Safety of property against natural disasters, calamities, wars, etc

18. Safety Needs

19. Social Needs Need to love and be loved Need to feel a sense of belonging and acceptance Small groups – clubs, office teams, school/college houses Large groups – political parties, Sports teams, facebook

20. Social Needs

21. Esteem Needs Need to be respected by others and in turn respect them Sense of contribution, to feel self-valued, in profession or hobby Lower - respect of others, the need for status, recognition, fame, prestige, and attention Higher - self-respect, the need for strength, competence, mastery, self-confidence, independence and freedom

22. Esteem Needs

23. Self Actualization Needs What a man can be, he must be Intrinsic growth of what is already in a person Growth-motivated rather than deficiency-motivated Cannot normally be reached until other lower order needs are met Rarely happens - < 1% Acceptance of facts, spontaneous, focused on problems outside self, without prejudice

24. Self Actualization Needs

25. 27 The Factors of Production

26. 28