Ardela Ari Wibowo1206201763

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.