Copyright © 2011 Pearson Education, Inc. All rights reserved. Chapter 7 Economic Systems The Allocation of Resources The Conversion of Resources The Distribution.

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Copyright © 2011 Pearson Education, Inc. All rights reserved. Chapter 7 Economic Systems The Allocation of Resources The Conversion of Resources The Distribution of Goods and Services The Worldwide Trend Toward Commercialization

Copyright © 2011 Pearson Education, Inc. All rights reserved. The Allocation of Resources  Natural Resources: Land  Technology

Copyright © 2011 Pearson Education, Inc. All rights reserved. The Allocation of Resources Natural Resources: Land  Foragers  Horticulturalists  Pastoralists  Intensive Agriculturalists  Colonialism, the State, and Land Rights

Copyright © 2011 Pearson Education, Inc. All rights reserved. The Allocation of Resources Technology Every society makes use of technology, including tools, constructions, and required skills.

Copyright © 2011 Pearson Education, Inc. All rights reserved. The Conversion of Resources In all societies, resources have to be transformed or converted through labor into food, tools, and other goods in a process called production.

Copyright © 2011 Pearson Education, Inc. All rights reserved. The Conversion of Resources Types of Economic Production:  Domestic  Tributary  Industrial  Postindustrial  Telecommuting

Copyright © 2011 Pearson Education, Inc. All rights reserved. The Conversion of Resources  Incentives for Labor  Forced and Required Labor  Division of Labor  The Organization of Labor  Making Decisions About Work

Copyright © 2011 Pearson Education, Inc. All rights reserved. Figure 7-1 (p. 119) A Comparison of the Proportion of Work Tasks Done by Adults and Children Source: From James A. Levine, Robert Weisell, Simon Chevassus, Claudio D. Martinez, and Barbara Burlingame, “The Distribution of Work Tasks for Male and Female Children and Adults Separated by Gender” in “Looking at Child Labor,” Science 296 (10 May 2002): 1025.

Copyright © 2011 Pearson Education, Inc. All rights reserved. The Conversion of Resources All societies have some division of labor, or customary assignment of different kinds of work to different kinds of people.  Gender and Age

Copyright © 2011 Pearson Education, Inc. All rights reserved. The Distribution of Goods and Services Distribution of goods and services can be classified under three general types:  Reciprocity  Redistribution  Market or Commercial Exchange

Copyright © 2011 Pearson Education, Inc. All rights reserved. The Distribution of Goods and Services Reciprocity consists of giving and taking without the use of money.  Generalized Reciprocity  Balanced Reciprocity

Copyright © 2011 Pearson Education, Inc. All rights reserved. The Distribution of Goods and Services Redistribution is the accumulation of goods or labor by a particular person, or in a particular place, for the purpose of subsequent distribution.

Copyright © 2011 Pearson Education, Inc. All rights reserved. The Distribution of Goods and Services In market or commercial exchange, prices depend on supply and demand.  Kinds of Money  Degrees of Commercialization  Why Do Money and Market Exchange Develop?  Possible Leveling Devices in Commercial Economies

Copyright © 2011 Pearson Education, Inc. All rights reserved. The Worldwide Trend Toward Commercialization Commercialization  Migratory Labor  Nonagricultural Commercial Production  Supplementary Cash Crops  Introduction of Commercial and Industrial Agriculture

Copyright © 2011 Pearson Education, Inc. All rights reserved. The Worldwide Trend Toward Commercialization Migratory Labor Some members of a community move to a place that offers the possibility of working for a wage.

Copyright © 2011 Pearson Education, Inc. All rights reserved. The Worldwide Trend Toward Commercialization Nonagricultural Commercial Production When a self-sufficient society comes to depend more and more on trading for its livelihood. This is generally done to obtain other industrially made objects.

Copyright © 2011 Pearson Education, Inc. All rights reserved. The Worldwide Trend Toward Commercialization Supplementary Cash Crops When people cultivating the soil produce a surplus above their subsistence requirements, which is then sold for cash.

Copyright © 2011 Pearson Education, Inc. All rights reserved. The Worldwide Trend Toward Commercialization Introduction of Commercial and Industrial Agriculture Commercial agriculture- cultivation for sale, rather than personal consumption, becomes industrialized when some of the production processes are done by machine.