Future Business Leaders of America (FBLA) Agribusiness Practice Test

Which of the following statements is true about Needs?

1. They refer to luxury items.

2. They are essential for daily living.

3. They are always abundant.

4. They are dependent on economic trends.

The correct answer is: They are essential for daily living.

Needs are essential for daily living because they encompass the basic requirements that individuals must have to survive and function effectively. These typically include food, water, shelter, and clothing, which are fundamental to maintaining health and well-being. The distinction between needs and wants is critical in understanding consumer behavior and economic principles, as needs are non-negotiable for sustenance and survival. The other options do not accurately describe needs. Luxury items would fall under the category of wants, rather than needs. The idea that needs are always abundant is not true, as many people in various regions of the world struggle to meet their basic needs. Lastly, while economic trends can influence the availability of certain goods and services, needs themselves are universal and not entirely dependent on fluctuating economic conditions. Therefore, the statement that properly defines needs relates specifically to their role as essential for daily living.