2. Economies and Needs

The chapter discusses the relationships between needs and the supply of the tangible and intangible goods that can satisfy these needs. A shortage of resources is confronted with an unlimited number of needs, which means that choices have to be made. Efficiency and effectiveness in the use of limited resources is shown to be necessary. The various types of need are identified, categorised and described. After presenting mechanisms for determining needs, the chapter goes on to identify, categorise and describe the various types of goods and ways in which demand can be managed. Attention is paid to public tasks and ways in which they can be executed are outlined. The different economic systems (market and planned) are described and the economic constitution is presented—the components are the state, the legal system, and the social and ecological orders.