Economics Flashcards
What is Economics?
It is how goods and services are produced, distributed and consumed.
What are the parts of an economic system?
An economic system contains access, production, exchange and consumption.
Access to what?
It is access to raw material.
Most raw materials are land.
Define land tenure
It is how the rights to the use of land are held.
H&G: land tenure by use
Hr: by family group (extensive family)
Ints agr & I agr: individual ownership
What is production?
It is conversion of raw material into usable forms.
What is division of labor?
It is how the tasks of society are divided up. There is simple and complex division of labor.
What is simple division of labor?
The tasks are divided on the basis of sex and age only.
Everybody is involved in the food procurement.
Relative equality: H&G, Hr
What is complex division of labor?
The tasks are divided on the basis of sex, age and any other criteria (ex: training, family…)
Not everybody is involved in food procurement.
There is food surplus;
There is inequality: Ints agr, I agr
What is exchange?
It is how goods and services are distributed to members of society.
What is reciprocity?
It is giving and taking of more or less equal value. There are generalized reciprocity, balanced reciprocity and negative reciprocity.
What is generalized reciprocity?
It is reciprocity without the expectation of immediate returns (ex: birthday presents)
It is main form of exchange in every family, close friends and H&G.
What is balanced reciprocity?
It is reciprocity with expected return within time limit.
Only exchange when you have extra.
Trade with someone of social distance or physical distance.
Hr
What is negative reciprocity?
It is cheating in reciprocity.
Overcome with trade partners.
What is redistribution?
It is goods going through a central authority and then out again.
Taxation: One is not having direct economic relationship with everyone in the exchange. The relationship is with the authority.
Intensive Agriculture
What is market exchange?
It is buying and selling using a medium of exchange (ex: money)
Industrialism
