| A | B |
|---|
| Long ago, when people lived in tribes or villages, | they had to be totally self-sufficient. |
| Self-sufficient means | they got all their needs and wants from the village. |
| Food | was hunted or gathered or grown. |
| Shelter | was made from the local area, trees, stones and animal skins. |
| Clothes | were made from animal skins or fig leaves.. |
| Tools and weapons | were made from sticks and bones. |
| The people in the old days had the same | needs as we do, food, shelter, clothing. |
| Subsistence is another word for | Self-sufficient. |
| Subsistence farming means | that the farm or the village grows all its own food. |
| When they learned how to plant and grow crops every year | a surplus was created. |
| Surplus means | more food than you need. |
| The surplus food | was traded with another tribe. |
| Trading your goods for someone else's was called | bartering. |
| Barter means to swap one good | for another good. |
| A stone axe might be swapped for | some skins or clay pots or jewellery. |
| With bartering it is difficult | to work out the value of an item. |
| A double coincidence of wants | is when you meet someone and you both want to swap. |
| Money was developed. This overcame | the problems of bartering. |
| Money was anything that people | usually accept as payment. |
| Our modern day world is very | specialised. |
| Specialisation means that each | person does a special job. |
| Examples of specialisation: | a mechanic, a nurse, a computer analyst etc. |
| The advantage of specialisation is | that more goods and services can be produced. |
| Because of specialisation consumers | have a greater range of goods and services to choose from |
| Interdependence | means we rely on other people to produce the goods and services we want. |
| There is interdependence between | individuals, between businesses and between individuals and businesses. |
| There is also interdependence | between consumers, businesses and the government. |
| A worker relies on | the employer for income. |
| The employer relies on | the worker for labour. |
| Consumers rely on | producers to make goods and services. |
| Tax is collected from income | and from the sale of goods and services. |
| Tax is collected | by the government. |
| The government uses the tax | to provide goods and services to satisfy society's collective needs and wants. |
