Question

As per the Robbins definition, human wants are _____.
A. Unlimited
B. Limited
C. Scarce
D. All of the above

Answer 1

Hint: A British economist named Lionel Robbins proposed a scientific definition in economics where he emphasized on human needs. He emphasized the relationship between ends and scarce means in the economy.

Complete answer: Lionel Robbins who was a famous economist gave a popular explanation of ends and scarcity in the economy which is known as Robbin's definition. He defined human needs as ends in the economy that are unlimited. The unlimited wants refer to human’s insatiable greed or appetite for things. Robbin's definition explains that there is always something else that humans need and they never get enough. On the other hand, the resources for humans are limited and this creates the problem of scarcity. The basic concept behind the definition is that human wants or needs have no limits and it is infinite or unlimited. But what humans can afford is finite and limited. Humans consume a variety of goods and services which never seems enough to them. The term ‘unlimited wants’ applies to all socioeconomic groups. The low-income groups have limited resources and their needs exceed the resources. The same is true for middle and higher-income groups as they also never feel having enough. Simply this can be defined as the infinite needs of humans with limited wealth. This creates an economic problem that states that human needs can never be satisfied. Humans cannot produce everything and thus, they have to choose and prioritize over what they should produce from the limited resources available to them. The available resources cannot exceed a limit set by available natural resources. The produce in the market is made based on the number of available resources and strength of demands for a particular good. Therefore, the prices in the market are determined by the forces of supply and demand.
Therefore, option A is the correct answer.

Note: There is a definite difference between wants and needs. The needs are the things without which humans cannot survive. On the other hand, the wants are the desires or the appetite for more. The fundamental needs play a key role in the functioning of the economy. Wants are the driving forces that initiate the demand for goods and services.