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Difficulty: MediumScale of Preference

A consumer with a limited budget constructs a scale of preference to allocate income among several competing items. Based on the economic principles of urgency and necessity, in what order should the consumer rank these items from highest priority (most urgent) to lowest priority (least urgent)?

  1. 1Purchasing daily basic food supplies to meet primary survival needs.
  2. 2Buying essential prescribed textbooks required for upcoming school examinations.
  3. 3Purchasing a new pair of designer shoes to replace a functional pair.
  4. 4Acquiring a high-end video gaming console for leisure entertainment.

Answer

The correct order from highest priority to lowest priority is: Purchasing daily basic food supplies, Buying essential prescribed textbooks, Purchasing a new pair of designer shoes, and Acquiring a high-end video gaming console.
A scale of preference is a list of unsatisfied wants arranged in order of relative importance or urgency. Basic survival needs rank highest, followed by urgent functional needs, comfort upgrades, and lastly non-essential luxury items.

Step-by-Step Solution

1
Identify primary basic survival needs.
Basic food supplies satisfy fundamental physiological survival, placing them at the first position.
Survival needs must be satisfied before secondary wants or needs can be considered.
2
Identify essential functional and educational needs.
Prescribed textbooks required for upcoming examinations occupy the second position.
Textbooks are an urgent necessity for academic performance with immediate time sensitivity.
3
Distinguish between comfort upgrades and non-essential luxuries.
Upgrading functional shoes occupies the third position, while the high-end gaming console occupies the fourth position.
Comfort upgrades take precedence over pure luxury entertainment items, which sit at the bottom of the preference scale.

Key Concept

Scale of Preference
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Topics

Scale of Preference

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