Development of Economic Activities Flashcards
What is meant by having a survival mentality?
Only providing for what was needed at each moment instead of thinking of a way to improve your lifestyle.
What is meant by subsistence economies?
When man provides for himself without thinking of improving his way of life.
What are economic activities?
Activities human beings are engaged in in order to satisfy their basic needs.
E.g. hunting, fishing etc.
What is direct production?
Providing for yourself and family without the help of others.
What is productive activity?
Creating tools and specializing in growing different types of crops to produce more.
What is surplus?
The extra that was produced by each family or person.
Why was surplus a good problem?
Because more goods were produced than what was needed and families didn’t know what to do with the extra.
What system solved the surplus problem?
The barter system
What is barter?
A system of exchange of goods and services for other goods and services without the use of money.
True or False
Barter involved the exchange of tangible items only.
False
List one advantage of the barter system
- It provided a way to dispose of surplus products.
- It enabled a person to get what he or she did not have OR could not produce.
- Trading could take place without money.
How does Modern Day Barter benefit individuals, companies and countries?
They see a mutual benefit in exchanging without the use of money.
List the problems or disadvantages of the barter system.
▶ Indivisibility of Goods
▶ A double coincidence of wants
▶ Storage of wealth
▶ An exchange rate
Barter Problems
Why was Indivisibility of goods a problem?
Some goods were not able to split into smaller parts to make the exchange process fair.
Barter Problems
Why was a double coincidence of wants a problem?
A person had to find someone who wanted what he/she had to exchange, and that other person had to have what was needed so exchange could take place.
