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Closed Household Economy
A closed-household economy is a society's economic system in which goods are not traded. Instead, those goods are produced and consumed by the same households. In other words, a closed-household economy is an economy where households are closed to trading. This kind of economy is present, for example, in hunter-gatherer societies. The production and consumption of goods is not separated as in a society with high division of labor. The closed-household economy contrasts with a barter economy, in which goods are bartered (traded against each other), and a monetary economy Monetary economics is the branch of economics that studies the different theories of money: it provides a framework for analyzing money and considers its functions (as medium of exchange, store of value, and unit of account), and it considers h ..., in which goods are traded for money. The closed-household economy and the barter economy are together referred to as ''non-monetary economies''. References ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Economic System
An economic system, or economic order, is a system of production, resource allocation and distribution of goods and services within an economy. It includes the combination of the various institutions, agencies, entities, decision-making processes, and patterns of consumption that comprise the economic structure of a given community. An economic system is a type of social system. The mode of production is a related concept. All economic systems must confront and solve the four fundamental economic problems: * What kinds and quantities of goods shall be produced: This fundamental economic problem is anchored on the theory of pricing. The theory of pricing, in this context, has to do with the economic decision-making between the production of capital goods and consumer goods in the economy in the face of scarce resources. In this regard, the critical evaluation of the needs of the society based on population distribution in terms of age, sex, occupation, and geography is very ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Trade
Trade involves the transfer of goods and services from one person or entity to another, often in exchange for money. Economists refer to a system or network that allows trade as a market. Traders generally negotiate through a medium of credit or exchange, such as money. Though some economists characterize barter (i.e. trading things without the use of money) as an early form of trade, money was invented before written history began. Consequently, any story of how money first developed is mostly based on conjecture and logical inference. Letters of credit, paper money, and non-physical money have greatly simplified and promoted trade as buying can be separated from selling, or earning. Trade between two traders is called bilateral trade, while trade involving more than two traders is called multilateral trade. In one modern view, trade exists due to specialization and the division of labor, a predominant form of economic activity in which individuals and groups ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Hunter-gatherer
A hunter-gatherer or forager is a human living in a community, or according to an ancestrally derived Lifestyle, lifestyle, in which most or all food is obtained by foraging, that is, by gathering food from local naturally occurring sources, especially wild edible plants but also insects, Fungus, fungi, Honey hunting, honey, Eggs as food, bird eggs, or anything safe to eat, or by hunting game (pursuing or trapping and killing Wildlife, wild animals, including Fishing, catching fish). This is a common practice among most vertebrates that are omnivores. Hunter-gatherer Society, societies stand in contrast to the more Sedentism, sedentary Agrarian society, agricultural societies, which rely mainly on cultivating crops and raising domesticated animals for food production, although the boundaries between the two ways of living are not completely distinct. Hunting and gathering was humanity's original and most enduring successful Competition (biology), competitive adaptation in the nat ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Division Of Labor
The division of labour is the separation of the tasks in any economic system or organisation so that participants may specialise (Departmentalization, specialisation). Individuals, organisations, and nations are endowed with or acquire specialised capabilities, and either form combinations or trade to take advantage of the capabilities of others in addition to their own. Specialised capabilities may include equipment or natural resources as well as skills. Training and combinations of equipment and other assets acting together are often important. For example, an individual may specialise by acquiring tools and the skills to use them effectively just as an organisation may specialise by acquiring specialised equipment and hiring or training skilled operators. The division of labour is the motive for trade and the source of economic interdependence. An increasing division of labour is associated with the growth of total Output (economics), output and trade, the rise of capitalis ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Barter Economy
In trade, barter (derived from ''bareter'') is a system of exchange in which participants in a transaction directly exchange goods or services for other goods or services without using a medium of exchange, such as money. Economists usually distinguish barter from gift economies in many ways; barter, for example, features immediate reciprocal exchange, not one delayed in time. Barter usually takes place on a bilateral basis, but may be multilateral (if it is mediated through a trade exchange). In most developed countries, barter usually exists parallel to monetary systems only to a very limited extent. Market actors use barter as a replacement for money as the method of exchange in times of monetary crisis, such as when currency becomes unstable (such as hyperinflation or a deflationary spiral) or simply unavailable for conducting commerce. No ethnographic studies have shown that any present or past society has used barter without any other medium of exchange or measurement ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Monetary Economy
Monetary economics is the branch of economics that studies the different theories of money: it provides a framework for analyzing money and considers its functions (as medium of exchange, store of value, and unit of account), and it considers how money can gain acceptance purely because of its convenience as a public good. The discipline has historically prefigured, and remains integrally linked to, macroeconomics. This branch also examines the effects of monetary systems, including regulation of money and associated financial institutions and international aspects. Modern analysis has attempted to provide microfoundations for the demand for money and to distinguish valid nominal and real monetary relationships for micro or macro uses, including their influence on the aggregate demand for output. Its methods include deriving and testing the implications of money as a substitute for other assets and as based on explicit frictions. History Islamic Golden Age At around t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Self-sustainability
Self-sustainability and self-sufficiency are overlapping states of being in which a person, being, or system needs little or no help from, or interaction with others. Self-sufficiency entails the self being enough (to fulfill needs), and a self-sustaining entity can maintain self-sufficiency indefinitely. These states represent types of personal or collective autonomy. A self-sufficient economy is one that requires little or no trade with the outside world and is called an autarky. Description Self-sustainability is a type of sustainable living in which nothing is consumed other than what is produced by the self-sufficient individuals. Self-sustainability is a comprehensive approach to sustainable living that extends beyond mere environmental responsibility to encompass economic independence, reduced reliance on major corporations, and minimizing environmental impact through personal actions. Examples of attempts at self-sufficiency in North America include simple living, food ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
