MODULE 6.3 Flashcards
Economic processes
Reciprocity, transfers, redistribution, market transcactions
Transaction between two socially equal parties concerning goods or services that are estimated to be of
equal value.
RECIPROCITY
Circular process wherein
you just receive and return
the favour
RECIPROCITY
Types of reciprocity:
Gift giving without any expectation of
immediate return
Generalized
Types of reciprocity:
Expecting immediate return from any
favour and the value of the commodity is
expected to be equal.
Balanced
Types of reciprocity:
Exchange tends to favour one party over
the other as the value of the goods for
exchange is unequal
Negative
When resources from one individual or
organization are given to another with no
expectation of return
Transfers
Allows redistribution of resources within
economic system
Transfers
Resources of one, several
individuals, or groups are
collected and distributed
proportionally or equally to
participating members
Redistribution
Use of currency distinguishes it from
other systems
Market transactions
Exchange of goods and services that
involves buying and selling processes
Market transactions
Types of economic subsistence
Foraging, pastoralism, horticulture, agriculture
Value of exchange of goods and
services are normally dictated by the
rules of supply and demand
Market transactions
Institutions that are part of the state
State institutions
Institutions that are not part of the state
Non-state Institutions