Ardela Ari Wibowo

1206201763
On an article, the title is On the relativity of the concepts of needs, wants,
scarcity and opportunity cost written by Ernest Raiklin and Uyar Bulent explains about
needs, wants, scarcity and opportunity cost. In this article, the explanation about
differences of needs and wants is not so clear. There are no condition defined as
difference between needs and wants.
The explanation about concept of needs is very good. It is interesting when the
author explain about the biological component and socio-cultural of needs. This theory
is absolutely right. As human, we need food, clothing, medicine, and shelter. It is basic
needs which we have to get to survive our live. So, humans can exist and do their
activities. The three factors are included in socio-cultural component of need is good for
me. As we know that environment has great affect for humans. In first and second factor
actually I dont so understand. They look similar; maybe the reader will understand it
easier if the author give simpler example. The third factor is easier to understand if the
reader has been live in two or more country. I have been learning about it in my class.
The standard of living depends on a countrys productivity. The people in a country
which has high productivity will have more needs than people who live in country
which has low productivity.
The explanation about wants overall is clear. Actually, it is hard for readers to
decide what they needs and wants. Many factor which make what they wants look like
needs. This problem is explained by author in part of wants and economy activities. As
what I have learned, people as consumer really has great affect to economy activity and
vice versa. If people want high, the producers will increase production automatically. It
is the reason why the gap between wants and needs is so close. It causes economic
activity. It can also make the gap between needs and wants wide.
The explanation about scarcity gives the reader a new concept. As we know
scarcity occur because humans have unlimited wants and limited resources. As the
previous explanation that human needs and wants depend on socio-culture and economy
activities. It makes human needs and wants continues to shift and change. This situation
cause relative scarcity. It occurs in certain condition in certain place.
I agree with the explanation about opportunity cost. As what I have learned
opportunity cost arise because all human wants cannot be satisfied. We cant get
everything which we want because we have limited sources. It cause we have to make
choice. Human needs and wants come from within each person. It is heavily influenced
by instinct. So, it makes human will be facing scarcity and making a choice. It is the
main problem of economy.

Ardela Ari Wibowo

1206201763