What Is Economic Motive – Have you ever heard of the term "economic motive"? Time is often used in economics. But do Whizmates know what that means?
In simple terms, economic motives can be interpreted as a person's reasons for carrying out economic activities. So, to learn more about what economic motives mean and the types of economic motives, let's see the following article!
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What Is Economic Motive?
Economic motives encourage people to carry out economic activities to achieve prosperity. In other words, economic motives make people take economic action. The most basic economic motive is to fulfill life's necessities
The urge to take economic action is divided into two, namely intrinsic and extrinsic motives. In other words, economic motives can come from oneself or intervention from the outside environment.
Put, intrinsic motives are carried out because there is a drive from oneself to obtain goods and services. Conversely, extrinsic motives are carried out because of the desire to get goods and services that outsiders influence.
Economic motives are shared through various kinds of actions. The following are various types of economic motives. Come on, let's learn together!
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Kinds of Economic Motives
As humans, we will perform various economic actions. Some things are done to meet life's needs and get richer. There are other reasons, such as selling medicine at low prices to help fellow human beings.
Thus, we know that the motivation to take economic action is very diverse. Let's learn about the five kinds of economic motives together.
1. Motives to Meet Needs
The motive to meet needs is the biggest driver for humans to carry out economic activities from humans who work (carry out production activities) until some consume them (consume).
This concretely manifests economic action to meet human needs and desires. In this economic motive, needs are not only about food. However, it consists of primary, secondary, and tertiary needs.
Primary needs consist of clothing, food, and housing. Meanwhile, secondary needs can be met after the primary needs are met, for example like a vehicle. Once these secondary needs are met, you can fulfill the tertiary needs or the needs for luxury, such as going on a vacation to Europe.
This explanation about primary, secondary, and tertiary needs has been discussed by Whiz in a previous article too.
2. Motives to Help Others (Social)
The next economic motive is the social motive. Yep, this motive is concerned not only with profit and self-needs but also with the good and welfare of others. Therefore, social motives have the highest value among other motives.
For example, we donate to residents whose areas are being hit by natural disasters and work together to repair bridges with local neighbors. All things that aim to help others can be classified as social motives.
3. Motives for Obtaining Awards
Furthermore, economic motives can be in the form of motives to get awards. For example, a person works hard to develop their business and at the same time gains recognition; their name is proclaimed in one of the business magazines.
However, the meaning of appreciation here varies, it can be in the form of appreciation from other people or prestigious awards.
4. Motives to Get Profit
What comes to your mind when you see the word "profit"? Yep! Everything has to do with money, of course. However, profit is not always defined in the form of money. Sometimes, profit can also be obtained through certain relationships or facilities.
5. Motives to Acquire Power
In addition to getting profit, someone also carries out economic activities to gain power.
For example, in the field of business and industry, someone will try to gain power by adding business branches to control a broader market. Another example is a regional head trying to improve public services so that they are elected in regional elections.
Also Read: Unexpected Entrepreneurial Benefits
Well, that's the meaning and various kinds of economic motives. Apart from knowing about economic motives, it would help to learn more about financial literacy. With the Whiz Financial App., you can do it altogether. Come on, let's try it!
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