Economic Motives: Definition, Examples, Purpose, and Kinds
Economic Motives: Definition, Examples, Purpose, Principles, and Kinds Every human desire or action taken in an effort to fulfill their life needs is always driven by certain causes or reasons. Human efforts in carrying out these economic actions vary, as a result the economic motives behind them also vary.
For example, a person works because he wants to earn income to fulfill his life needs, a student studies because you want to be smart, as well as a trader providing good service so that buyers are comfortable and become customers still.
Economic Motives: Definition, Examples, Purpose, Principles, and Kinds
Let's look at the meaning of economic motives first.
Understanding Economic Motives
Economic motives are all the reasons, encouragement, and activities carried out by a person or entity to carry out economic actions. Motive comes from the word motive (in English) which means reason or mover.
Every reason will encourage people to carry out activities, actions or an action. Every activity, action taken by a person is driven by a desire/motive to achieve certain goals.
Examples of motives in economics are as follows:
- A diligent farmer and so that the harvest is successful and abundant.
- A scavenger works late into the night to supplement his income.
- An entrepreneur who promotes his wares on television so that his products sell well in the market.
- The Portuguese colonized East Timor to control its natural resources.
Everyone has a desire to satisfy his needs as much as he can. Meeting this need requires action steps. Actions taken by humans to meet their needs can be said to be economic actions. Meeting these needs requires action steps. The reasons that encourage someone to take economic action are called economic motives. Economic motives are efforts or efforts that motivate people to take economic action.
Actions taken by someone must have a clear reason or because there is a strong urge to take economic action. The reasons that encourage someone to take economic action are called economic motives. Economic motives are efforts or efforts that motivate people to take economic action.
The ultimate goal of economic motives is to achieve prosperity. A person performs this economic action driven by various reasons, which are as follows:
- Improving welfare both with incentives to seek profit and with the principle of renewal or innovation.
- To get appreciation from society.
- To gain power in society.
- Want to do something social.
Everyone's needs are limitless. After one need is satisfied, another need will emerge. While the means of satisfying needs is limited. Therefore, the actions taken by a person are guided by economic principles, namely with certain sacrifices to obtain maximum results. Thus, economic action must be driven by economic motives and based on economic principles.
Motive is a person's reason for doing something or an urge from within humans to act or act. In everyday life we can see as if a student wants to go to school because there is a desire to seek knowledge and become a smart person. Humans act because they are driven by desire. If the desire is related to economic activity, then it is called an economic motive.
In connection with the understanding of economics, that economic motives in carrying out economic activities can come from oneself or from the environment. Motives that come from oneself are called intrinsic motives, while motives that come from the environment are called extrinsic motives.
Economic Actions
- Economic action is all human efforts to meet unlimited needs with good consideration based on a scale of priorities to achieve prosperity.
- Needs are human desires that want to be fulfilled, such as food, drink, clothing, housing, education, and so on.
- Humans who try or work to earn income mean that they have taken economic action, because humans can use it to meet their daily needs.
- Humans try to meet their needs starting from the most basic needs (food needs, clothing, and so on). boards) to higher needs (needs for security, respect, self-esteem, and actualization self).
Purpose of Economic Motives
Based on the description above, the main purpose of economic motives is to meet human needs throughout their lives. However, in general human needs are divided into three:
- Primary needs are basic human needs which include food, drink, clothing and shelter.
- Secondary Needs, are additional needs that are useful to support primary human needs such as books, magazines, vehicles, television, smartphones, etc.
- Tertiary needs are human needs that are more prestigious or considered capable of elevating a person's degree, such as luxury homes, sports equipment, musical instruments, etc.
Origin of Economic Motives
The following is the origin of Economic Motives, among others.
Intrinsic Motive
Intrinsic motive is an urge for economic action that arises from one's own security. Examples of economic action driven by intrinsic motives are as follows:
- To relieve her thirst, Maya bought a bottle of drinking water.
- Every time she walks, grandma must use a stick as her foundation, because grandma's feet hurt and she needs help for balance.
Extrinsic Motives
Extrinsic motive is an urge to take economic action that is driven by environmental factors or from other people. Examples of economic action driven by extrinsic motives are:
- It is a school rule for students to wear black shoes at school.
- Dad just bought a motorbike, because all of my office friends have used motorbikes.
Economic Principles
- The principle of economics is effort or consideration accompanied by the smallest possible sacrifice to achieve certain results or with certain sacrifices to achieve maximum results.
- The benefit of economic principles is to obtain maximum results at a certain level (maximum profit) and minimize losses suffered at a certain level (minimum sacrifice).
Classification of economic principles
- Principles of consumer economics
- Producer economics principles
- Distributor economics
Kinds of Economic Motives
There are several kinds of economic motives, including:
1. Motives in Fulfilling Needs
Motives to fulfill needs are human actions that are driven by the desire to fulfill a need.
2. Motives for Profit / Profit
The motive for seeking profit is anything that encourages people to take economic action to gain profit.
3. Motives for Gaining Economic Power
The motive for gaining economic power is the desire of people who are already prosperous, but still do it economic action because of the urge to gain power in various business activities in economy.
4. Motives to Get Awards
The motive for getting an award is a human action that is driven to get appreciation.
5. Social Motives
Social motives are anything that encourages people to take economic action because they want to help others.
6. Goods Production Motives
Within the scope of the company, a company will try to produce goods or services at low prices but of good quality. This is done to obtain a certain portion of the target market in a more sustainable manner.
7. The motive is to maintain the continuity of the company
Still within the scope of the company, although currently many people are building companies, not all of them are able to maintain the essence of the company. This is the reason for all companies to be able to seek sustainable profits, so that all operational activities of the company can continue to move.
Thus our brief discussion of Economic Motives: Definition, Examples, Purpose, Principles, and Kinds, also read various economic motives. Hopefully the above article can add to our insight and be useful for all of us. That's all and thank you.
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