Question

___________ are the wants, which are essential and without them we cannot imagine life

• A. Comforts
• B. Luxuries
• C. Necessities
• D. Geffen goods

Hint:

Remember the hierarchy of human wants:
$\text{Necessities (Survival)} \rightarrow \text{Comforts (Convenience)} \rightarrow \text{Luxuries (Status)}$.

Answer 1

The Correct Option is C

Step 1: Understanding the Concept:
In economics, human wants are classified into three categories based on their urgency and importance for survival: necessities, comforts, and luxuries.
Understanding this classification is essential for analyzing consumer behavior and demand elasticity.

Step 2: Detailed Explanation:
Let us define the classifications of human wants:
1. Necessities (C):
These are the basic, fundamental wants essential for human survival and basic physiological functioning.
They include food, clean water, clothing, shelter, and basic healthcare.
Without these essential goods, human life cannot be sustained or imagined.
Therefore, this definition matches the question.
2. Comforts (A):
These are wants that make life easier, more pleasant, and more efficient, but are not essential for survival.
Examples include a refrigerator, a washing machine, or a comfortable chair.
3. Luxuries (B):
These are expensive, prestigious goods that are not essential for survival or comfort, but are consumed to display wealth or social status.
Examples include luxury sports cars, expensive jewelry, and designer clothing.
4. Giffen goods (D):
This is an advanced economic term for a special type of inferior good whose demand increases as its price rises, violating the basic law of demand.

Step 3: Final Answer:
Necessities are the basic wants that are essential for survival and without which we cannot imagine life.
Therefore, the correct option is (C).