Ask Leo: How has scale of preference help to make the right choice to avoid wastage

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What scale of preference?

In economics,Scale of preference can be defined as a list of unsatisfied wants arranged in order of their relative importance.

What is want?
Wants simply means the desire or wish to own goods or services that give satisfaction.

source for above definition
Our wants are numerous that is what we desire to buy are more and the resources is limited to get them.so we make use of scale of preference to make the right choice so as to get things we need the most.
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Scale of preference has help us in so many ways to make the right decision and to avoid wastage. Imagine you have $1000 which can buy a car or to buy a house through the scale of preference you make the right decision. Meanwhile the person doesn’t have a house.Now you look at the one that is more important and pressing by applying the scale of preference. Such person who want to one those two things will rather go for a house because the demand for the house is pressing. Apart from that house will always appreciate while the car depreciate.
Scale of preference preference has really make us to make the right decision and choice to avoid wastage.

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