When we talk about economic life, we humans have growing needs. Economic life is also known as service life.
We all require basic needs to live and continue our lives. Life is not possible without air, water and food. Apart from these basic requirements, shelter, and clothes are also necessary. This list keeps on increasing along with time.
In this chapter, let us learn more about economic and non-economic needs, and their importance in our economic life.
Economic Needs and Non-Economic Needs
Every living being has its requirements. Air, water, food, clothes and shelter are basic needs, without which life is not possible.
In earlier days, humans lived in forests and caves, built their huts for shelter and protection from wild animals and cold weather, and wandered for food by hunting animals and eating fruits and vegetables. They also started farming, and used water from rivers and ponds for washing, cooking and drinking.
Later, they started farming, harvesting crops, eating cooked grains, collecting and storing things for their future.
When they were in need, they borrowed what they required from others in a community and, in return, gave something belonging to them.
This is how business started in the form of interchange in the community.
The basic needs or requirements for which we have to spend money are called economic needs. The goods or services we buy from the market are examples of economic needs.
The needs or requirements for which we do not have to spend money or buy from the market are called non-economic needs. Air and rain are examples of non-economic needs.
There is no limit to our needs, and to meet our economic conditions, we have to buy them by paying the price asked for. To pay the price, we have to work and earn money.
Economic Growth
Based on economic activities, the economy can be divided into three sectors. All these sectors are connected and dependent on each other. The three sectors are:
Primary sector
The primary sector is the oldest sector of economic activities. This sector includes farming, animal husbandry, fisheries, and includes all other natural resource related activities.
Secondary sector
The secondary sector includes all the industry-based activities, constructions of buildings, businesses, etc.
Tertiary sector
The tertiary sector includes all those activities associated with providing services to others, including stitching clothes, repairing shoes, accountancy, banking, teaching, repair and services, transportation, postal services, and telecommunications, etc.
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