Economics
( used with a singular verb ) the science that
deals with the production, distribution, and consumption of goods and services, or the material welfare of humankind.
2.
( used with a plural verb ) financial considerations; economically significant aspects: What are the economics of such a project?
To the left we will discuss the economic structures of the ancient world. To the right we will discuss basic economic principles as they are defined in the modern world and as they are practiced in the United States.
Early Economies
Humanity was allowed to move from a hunter-gatherer society to an Urban Society due to the advent of Farming and Animal Domestication. Up to this point economics was solely concentrated on gathering enough food, shelter and clothing for the tribe. Though economics exists even on this level, true economics begin with an organized system. The first economies to develope in the world were based on Agriculture. Though food was the major comodety of the ancient world it was by no means the only comodety. A large supply of food allowed for large populations to inhabit a relatively small area. This increase in population created a form of security. Life for even the poorest of city dwellers was also easier than the life of a hunter-gatherer. The serf population or laborers did not have to travel constantly, face wild animals, or worry about shelter for the night. By providing food for the priesthood and king, they earned the security of an army to defend them against marauders, a place to stay at nights, and a store of food.. The excess of food also allowed for specialization. Not every individual was needed for the production of food allowing some people to become experts is pottery, masonry, smithing, sculptures, priests, and nobility. Shortly after the advent of Farming a second commodety became the object of much conflict. This commodety was labor. The need for more labor led to the raiding of other villages for slaves to work their fields and do minial tasks freeing a larger percentage of the domestic population for specialization. Most early economies were a combination between free market and socialistic systems. The people paid a tithe or tax of their production to the king or priests, kept what they needed, and bartered with the excess. Economics of Sumer
Besides the Tigris and Euphrates Rivers and a large population, Sumer had little natural resources. This led them to trade for nearly every other resource. It is likely that trade with Prehistoric cultures in India and Eurasia led to the development of other civilizations. |
Basic Economics
The two most basic forces of economics are supply and demand. Supply is the amount of a material availible to a people. Demand is how much of the product is wanted. These two forces dictate every aspect of economics no matter what economic system is in use. An economic system can be defined as any means by which goods and services can be aquired. Two basic economic systems exist: socialistic or free market. In a socialistic market goods and services are divided or shared relatively equally or equally according to the importance of the individual. In a free market economy goods and services are provided for the profit of the person providing the goods or service. Most economic systems are some combination of these two systems. |