hi all how are you all business studies is taken as a difficult subject for fun for most of the students over here the only problem is that they don't understand the concept or they make concepts so difficult back then in their mind that they don't actually cannot relate it to the world around them i kind of blame the the books we are studying because these books are somehow a bit old so rather you talk about the new marketing strategies like snapchat and all these things you're probably talking about postal marketing who sends posts these days for marketing so my job over here it would be to help you understand the concepts we'll start gradually step by step i'll take you through all the concepts all the definitions so our first step basic step would be so that you understand all the concepts all the definitions so and then we'll go to the next steps today we'll talk about first thing is neat so we'll actually talk about three things neat we'll talk about wants and we'll talk about economic problem all right so let's talk about neet need make it very easy need is something you cannot live without you needed to live very essential for life these are things which are necessities for example let me put it this way food you need to eat food clean water ah which you can say part of food but most of the countries they don't get clean water very important shelter you need to have a house around you to save you from storms temperature and so many things uh and clothes of course you cannot run around wearing nothing in winters and of course you need clothes so these are few necessities part of life you need these are things you cannot live without now let's talk about wants wants on the other hand is things you wish you have things of course you can live without you can live happily without these i don't live happily but things you can live without but you desire these things you wish to have these things for example of course iphone you all want it badly right most of you uh cars and i would also say a big house and you would say wait house comes under shelter so why are you saying a big house i mean shelter would be a necessity a small house maybe somewhere but you need a big house and a porsche area and all that that all would come under wants so you don't need things you cannot live without wants things you can live without but you want it you see your friends have it you see people around you have it and you want it so what is economic problem put it very easy economic problem is are things you there are so many wants you have unlimited wants everyone around you wants an iphone maybe cars big house money to spend at restaurants so many things but economic problem is do we have the resources to make iphones for everyone around us to make cars for everyone around us even to pray for few countries even food is a problem you just can't provide food to everyone in most of the countries you can't provide clean water to people around you so my question is that do you think your government no matter if it's government of a very good country a very developed nation maybe you you talk about can they provide food shelter clothing clean water iphone cars any everything to anyone and everyone they need no it can't be possible you have a problem of money you have a problem of resources you need resources to make these things do you have resources for example let me put it this way a car would need iron i don't know a car would need different other resources land a place to produce cars you need lots of labor do you think you have all the land and all the iron and all the technology and everything to provide cars to everyone no so economic problem is simply that there are unlimited wants and needs but we have limited resources to produce these goods and services to satisfy those wants so what does that say it says let me put it this way you have needs which have basics if i may say plus wants and i would say unlimited wants i want everything in life hi but resources do you have enough resources to produce needs and wants and specially wants for everyone no no you don't so this brings up to the point where it says scare city scarcity means you have less this means the lack of sufficient products to fill out the total wants of the population it means you don't have enough to produce enough products and services to satisfy all your wants put it in an easy word i would say scarcity is shortage shortage of all the things products you need because remember remember we discussed we have high needs high demands we have needs plus wants are high resources to produce things are very low this brings us shortage of products you can't have food for everyone you can't have car for everyone you can't have an iphone everyone and another name for shortages scare city now just to revise what we have quickly learned we have learned four concepts let's see what are these four concepts quickly we'll revise neat things you cannot live without extremely important essential the second concept we learned is wants things you can live without but these are your desires things you wish you have i wish to have a lamborghini that's my want i need food it's a breakfast breakfast that's my need next we learned economic problem what is an economic problem then economic problem is that we have so many wants hi or i will use the word unlimited wants but we have limited resources to produce products for these ones this brings me to the last topic which is scarcity which means that because we have limited resources we have a shortage of products because we cannot produce anything and everything with the limited resources we have i hope i have tried to explain these four topics today if there are any questions you have any questions please write to me in the comment section or maybe the via email or direct so i'll be happy to explain this to you again thank you very much