State with reasons whether you agree or disagree with the following statements
1) All wants can be satisfied at a time.
Ans: I disagree with the given statement as all wants cannot be satisfied at a time.
(i) (a) Human wants are not limited or few but they are unlimited and ever increasing.
(b) There is a chain of wants which has no end.
(ii) Our preference always changes and accordingly our wants changes because of the tastes, habits and seasons and so on. It is quite difficult to satisfy all the wants together at the same time.
(iii) Human wants are recurring in nature, they arise again and again, i.e previous wants that we have already satisfied arise once again, hence economic problem becomes further complicated.
2) Human wants change as per the seasons and preferences.
Ans: I agree with the given statement.
(i) Human wants are not only unlimited but they change according to preferences and changing season.
(ii) Individual habits, taste and preferences decides the nature of wants, e.g. drunkard perfer liquor, smokers prefer cigarettes.
(iii) Wants changes from season to season, during rainy season people demand umbrellas, rain coats, etc. while during summer people prefer cold drinks, etc.
3) Value-in-use and Value-in-exchange are the same.
Ans: I disagree with given statement. Both value-in-use and value-in-exchange concepts are different.
(i) Value-in-use refers to usefulness of a commodity for goods like sun-light and air where we do not pay the price but these goods have immense value. We may die in the absence of these goods. In economic language these goods have high-value-in-use, these are called free goods.
(ii) Value-in-exchange refers to the worth of commodity or service expressed in terms of another commodity. For example one note book is equal to four pens, here value (worth) of note book is expressed in terms of pens. When value is expressed in terms of money it is called price.
(iii) (a) Goods like water have high degree of value-in use but less value-in-exchange. (b) On the other hand diamond has high value in exchange but less value in use.