economics. economics economic system – part of society that deals with production, distribution,...

EconomicsEconomics

EconomicsEconomics

Economic system – part of society that Economic system – part of society that deals with production, distribution, and deals with production, distribution, and consumption of goods and servicesconsumption of goods and services Tools used to produceTools used to produce Relationship of tools to people and people to Relationship of tools to people and people to

eachother in the process of producing, eachother in the process of producing, distributing, and consuming goodsdistributing, and consuming goods

Economics Economics

Society and economics are interdependentSociety and economics are interdependent Culture shapes goals of the people and how Culture shapes goals of the people and how

they achieve those goalsthey achieve those goals Organization of production has consequences Organization of production has consequences

for family structure and political systemfor family structure and political system

Economic behaviorEconomic behavior

Economics is the study of the decisions Economics is the study of the decisions people and societies make about how to people and societies make about how to use scarce resources to produce and use scarce resources to produce and distribute goods and servicesdistribute goods and services

Based on the idea of scarcity – unlimited Based on the idea of scarcity – unlimited wants, limited resourceswants, limited resources

Economic behaviorEconomic behavior

People will do what gives them the People will do what gives them the greatest benefit = economizing behaviorgreatest benefit = economizing behavior

Greatest benefit depends on your Greatest benefit depends on your motivation…money, grades, time with motivation…money, grades, time with family and friends, …family and friends, …

Prestige varies Prestige varies Consumption, display of goodsConsumption, display of goods Generosity, giving away of goods Generosity, giving away of goods

ProductionProduction

Allocation of resourcesAllocation of resources Organization of resourcesOrganization of resources

Production- Production- Allocation of ResourcesAllocation of Resources

Productive resources – things you need Productive resources – things you need to participate in the economyto participate in the economy Land, water, tool making materials, fishing Land, water, tool making materials, fishing

boats, knowledgeboats, knowledge

As population and social complexity As population and social complexity increase, more resources controlled by increase, more resources controlled by fewer peoplefewer people


Foragers Foragers Productive resources = hunting weapons, Productive resources = hunting weapons,

food gathering tools, knowledgefood gathering tools, knowledge Live in small groups that share land with Live in small groups that share land with

flexible boundaries that change as food flexible boundaries that change as food availability changes and the group movesavailability changes and the group moves


PastoralistsPastoralists Productive resources = land, water, and Productive resources = land, water, and

livestocklivestock Kinship groups share access to pastureKinship groups share access to pasture Head of household owns livestockHead of household owns livestock Animals require a lot of careAnimals require a lot of care Negotiate access to pasture surrounding Negotiate access to pasture surrounding

villages they pass through villages they pass through


HorticulturalistsHorticulturalists Productive resources = land, tools, Productive resources = land, tools,

knowledge, storage facilitiesknowledge, storage facilities Land owned by kin group, members given Land owned by kin group, members given

permission to use plotspermission to use plots Clearing land requires laborClearing land requires labor Where land scarce or population high, Where land scarce or population high,

competition for land may lead to warcompetition for land may lead to war


AgriculturalistsAgriculturalists Productive resources = Complex tools, land, Productive resources = Complex tools, land,

water, water, Surplus of food supports more peopleSurplus of food supports more people Individual landowners and laborers who Individual landowners and laborers who

work fieldswork fields Leads to more complex society with ruling Leads to more complex society with ruling

eliteelite

Production – Production – Organization of LaborOrganization of Labor Nonindustrial societiesNonindustrial societies

Household is the unit of production/consumptionHousehold is the unit of production/consumption Goals are often social or religiousGoals are often social or religious Labor is part of membership in kin groupLabor is part of membership in kin group

Industrial societiesIndustrial societies Business firm is unit of productionBusiness firm is unit of production Goal is economic growthGoal is economic growth Labor is commodity, bought and sold on marketLabor is commodity, bought and sold on market

Production – Production – Organization of LaborOrganization of Labor Division of Labor by SexDivision of Labor by Sex

Women give birth, nurse, care for childrenWomen give birth, nurse, care for children Foraging – women forage, men huntForaging – women forage, men hunt Horticulture – women grow staple foods, men Horticulture – women grow staple foods, men

grow trade foodsgrow trade foods Agriculture – women spend more time in Agriculture – women spend more time in

childcare, men grow trade crops and have capital childcare, men grow trade crops and have capital in marketplace; women more dependentin marketplace; women more dependent

Production – Production – Organization of LaborOrganization of Labor Specialization of LaborSpecialization of Labor

Complex agriculture of storable foods (grain), Complex agriculture of storable foods (grain), increased population of specialistsincreased population of specialists

Specialists produce goods, arts, religion, servicesSpecialists produce goods, arts, religion, services

DistributionDistribution

Exchange of goodsExchange of goods ReciprocityReciprocity RedistributionRedistribution Market exchangeMarket exchange


ReciprocityReciprocity Mutual give and take among people of equal Mutual give and take among people of equal

statusstatus Generalized reciprocityGeneralized reciprocity Balanced reciprocityBalanced reciprocity Negative reciprocityNegative reciprocity


ReciprocityReciprocity Generalized reciprocityGeneralized reciprocity

Distribution of goods with no immediate or specific Distribution of goods with no immediate or specific return expectedreturn expected

Successful hunter distributes meat to communitySuccessful hunter distributes meat to community Gains credit for future return, prestige, satisfactionGains credit for future return, prestige, satisfaction

Balanced reciprocityBalanced reciprocity Negative reciprocityNegative reciprocity


ReciprocityReciprocity Generalized reciprocityGeneralized reciprocity Balanced reciprocityBalanced reciprocity

Clear obligation to return, within time limit, goods of Clear obligation to return, within time limit, goods of equal valueequal value

Gift giving, trading partnersGift giving, trading partners

Negative reciprocityNegative reciprocity


ReciprocityReciprocity Generalized reciprocityGeneralized reciprocity Balanced reciprocityBalanced reciprocity Negative reciprocityNegative reciprocity

When trade is conducted for material advantage, When trade is conducted for material advantage, desire to get something for nothing or to get the desire to get something for nothing or to get the better end of a bargainbetter end of a bargain

Gambling, theft, cheating, hagglingGambling, theft, cheating, haggling Large societies where exchange is between Large societies where exchange is between

strangersstrangers


RedistributionRedistribution Goods are collected from the group then given Goods are collected from the group then given

out in a new pattern, like taxesout in a new pattern, like taxes Involves social centerInvolves social center Potlatch- Pacific Northwest Native American Potlatch- Pacific Northwest Native American

redistribution system where chiefs who gave redistribution system where chiefs who gave away or destroyed goods gained prestigeaway or destroyed goods gained prestige

Leveling mechanismsLeveling mechanisms


RedistributionRedistribution Leveling mechanisms – practices, values or Leveling mechanisms – practices, values or

forms of social organization that even out the forms of social organization that even out the distribution of wealthdistribution of wealth

Force accumulated resources to be used in Force accumulated resources to be used in ways that reduce economic differencesways that reduce economic differences

Cargo systems – wealthy community members Cargo systems – wealthy community members are elected to offices that require them to are elected to offices that require them to provide food and drink during festivalsprovide food and drink during festivals


Market Exchange – goods and services Market Exchange – goods and services are bought and sold for money, value are bought and sold for money, value determined by supply and demanddetermined by supply and demand Social and political roles not importantSocial and political roles not important Main goal is maximizing material gainMain goal is maximizing material gain Productive resources become capital when Productive resources become capital when

used to increase owner’s financial wealthused to increase owner’s financial wealth Capitalism Capitalism


Market ExchangeMarket Exchange Capitalism - people work for wages, land and Capitalism - people work for wages, land and

capital goods are privately owned, capital is capital goods are privately owned, capital is invested for individual profitinvested for individual profit Capital owned by small portion of populationCapital owned by small portion of population Most people’s primary resource is their laborMost people’s primary resource is their labor Value of worker’s contribution to production is Value of worker’s contribution to production is

always greater than compensation they receive always greater than compensation they receive

economics. economics economic system – part of society that deals with production, distribution,...

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