A Level Economics AQA Practice Exam

What do unlimited wants refer to in economics?

1. A limitless supply of resources

2. The human desire for a constant increase in material goods

3. The restricted nature of consumer needs

4. The finite quantity of goods produced

The correct answer is: The human desire for a constant increase in material goods

Unlimited wants in economics refers to the human desire for a constant increase in material goods. This concept suggests that people have an insatiable appetite for more and better goods and services. As individuals experience improved living standards or gain access to new products, their expectations and desires tend to expand, leading to a continual quest for more resources. This desire drives consumer behavior and influences market demand, making it a fundamental aspect of economic theory. The other options do not accurately capture the essence of unlimited wants. For instance, the idea of a limitless supply of resources contradicts the principle of scarcity, which is central to economics. Additionally, referring to the restricted nature of consumer needs overlooks the reality that needs can be met while wants continue to grow. Lastly, the finite quantity of goods produced ties into the concept of scarcity but does not directly explain the nature of unlimited wants themselves, which is about growing desires rather than the limits on production.