Economic Action: Definition and Explanation (Complete)

Economic Action: Definition and Explanation Humans will not be separated from the continuous needs of life, so they need actions that can meet their needs.

Economic Action: Definition and Explanation

On this occasion, About Knowledge will explain the meaning of economic action along with human needs which are divided into several groups. Here's the explanation.

Definition of Economic Action

Economic action is everything that is done by every human being in an effort to meet his needs based on the best and more profitable choice.

For example, a mother in a rural area prefers to cook with firewood rather than a stove, because gas is more expensive. Another example, in buying fuel oil such as gasoline, preferring at gas stations rather than at warungs, because the price is more efficient at gas stations.

Economic action is a human action to meet their needs by making choices and taking advantage of opportunities appropriately. Every human being has a desire to fulfill his needs as much as possible.

In meeting their needs, humans need steps and actions that they must take. The actions taken are none other than needs which are categorized as economic actions.

Needs are everything that humans need to achieve prosperity and prosperity. Human needs are divided into four, namely:

1. Based on the level of importance

• Primary needs: needs that are very important, really really needed and are mandatory to be fulfilled. Such as clothing, food and shelter.
• Secondary need: the type of need that is needed after all the basic or primary needs are met. Secondary needs are supporting primary needs. For example: a good and decent house, good education, nutritious food, and others that are not yet included in the luxury category. Only better.
• Tertiary needs: needs that are luxurious or not simple. For example: car, motor vehicle, laptop, iphone, etc.

2. By nature

• Physical needs: in the form of needs related to the body or the human body. Such as: food, clothes, sleeping, slippers, make up, etc.
• Spiritual needs: in the form of needs related to the human soul. Such as: socializing, worship, recreation, entertainment, etc.

3. By time

• Need now: a very urgent need and needed at this time. Example: broken water tap, must be replaced immediately, need to pee, eat because of hunger, accident that must be treated immediately.
• Future needs: a need that can be postponed and met at a later time in the future. Example: going to hajj, higher education, buying a sports car etc.

4. Based on the user's subject

• Personal/individual needs: needs that are only needed by individuals or individuals. For example: brushing teeth, praying 5 times a day, eating etc.
• Collective/social needs: needs needed by a group in the form of goods or services that can satisfy and fulfill social or group needs. For example: public roads or highways, organizations, the business world, companies and so on.

That's our brief explanation this time about Economic Action: Definition and Explanation, hopefully useful and can add insight to all of us. Thank you