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Chapter 6: Production & Exchange Objectives: Identify and describe the four modes of subsistence Distinguish between the three systems of exchange Compare and contrast formalist and substantivist economic theories Appreciate the variety of economic systems described in Scripture

Chapter 6: Production & Exchange Objectives: Identify and describe the four modes of subsistence Distinguish between the three systems of exchange

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Page 1: Chapter 6: Production & Exchange Objectives:  Identify and describe the four modes of subsistence  Distinguish between the three systems of exchange

Chapter 6: Production & Exchange

Objectives: Identify and describe the four modes of subsistence Distinguish between the three systems of exchange Compare and contrast formalist and substantivist

economic theories Appreciate the variety of economic systems

described in Scripture

Page 2: Chapter 6: Production & Exchange Objectives:  Identify and describe the four modes of subsistence  Distinguish between the three systems of exchange

Modes of Subsistence

Definition:

Culturally created means of securing food

Key Concepts foraging [hunting and

gathering] horticulture pastoralism agriculture market exchange (not

a subsistence strategy; combines with agriculture)

Page 3: Chapter 6: Production & Exchange Objectives:  Identify and describe the four modes of subsistence  Distinguish between the three systems of exchange

Subsistence system

DefinitionExamples in the

chapter

Foraging

a subsistence strategy based on gathering plants that grow wild in the environment and hunting

available animals

InuitJu/'hoansiWaorani

Horticulture

A subsistence strategy in which people cultivate varieties of wild or domesticated crops, primarily

for their own use, using relatively little technology

IkalahanYanamamo

Koyfar

Pastoralism

A subsistence strategy based on the use of domesticated herd

animals

MaasaiNuer

Samburu

Agriculture

A subsistence strategy that requires constant and intensive

use of permanent fields for plant cultivation

United States Latin American plantationsSoutheast Asian plantations

Page 4: Chapter 6: Production & Exchange Objectives:  Identify and describe the four modes of subsistence  Distinguish between the three systems of exchange

Subsistence Strategies

Foraging

Gathering/hunting based on ecology

Production refers to identifying, locating, and securing food in environment

Found in wide variety of environments

Social Forms Egalitarian

division of labor only based on gender; all adults do what other adults do

Low population density sufficient land mobility

“Affluence” based on wants, not supplies

Page 5: Chapter 6: Production & Exchange Objectives:  Identify and describe the four modes of subsistence  Distinguish between the three systems of exchange

Subsistence Strategies

Horticulture Generally subsistence

farming Requires

land predictable water

supply domesticatable or

accessible wild plants Typically uses

extensive farming techniques

Relatively little technology necessary

Social Forms Labor organized by kin

group or community Populations often settled May lead to limited social

stratification and specialization

Requires some sort of property rights

Page 6: Chapter 6: Production & Exchange Objectives:  Identify and describe the four modes of subsistence  Distinguish between the three systems of exchange

Subsistence Strategies

Pastoralism Production located in

herd animals Requires

accessible food for animals

accessible water domesticatable animals

Relatively little technology necessary

Social Forms Labor organized by kin

group or community Populations may be settled

(for transhumant) or nomadic

May lead to limited social stratification and specialization

Requires some sort of property rights

Page 7: Chapter 6: Production & Exchange Objectives:  Identify and describe the four modes of subsistence  Distinguish between the three systems of exchange

Subsistence Strategies

Agriculture Farming for the

purposes of trade and surplus

May involve extensive or intensive techniques

Often requires greater use of technological intervention

Generally monocropping

Social Forms Labor organized by

markets Often requires centralized

political systems and complex legal structures

Provides for high levels of social stratification and specialization

May allow populations to grow and centralize (urbanization)

Page 8: Chapter 6: Production & Exchange Objectives:  Identify and describe the four modes of subsistence  Distinguish between the three systems of exchange

Energy Input

Energy Output (Calories)

0

5

10

15

20

25

30

35

40

45

0 5 10 15 20 25 30 35

Extensive

Intensive

Equal input and output

Extensive and Intensive Farming

Page 9: Chapter 6: Production & Exchange Objectives:  Identify and describe the four modes of subsistence  Distinguish between the three systems of exchange

Systems of Exchange

Reciprocity generalized balanced negative

Redistribution Market

Page 10: Chapter 6: Production & Exchange Objectives:  Identify and describe the four modes of subsistence  Distinguish between the three systems of exchange

Economic Theories

Formalist All economic

systems can be understood in terms of neoclassical economics

Substantivist Local economic life

must be understood in its own terms

Page 11: Chapter 6: Production & Exchange Objectives:  Identify and describe the four modes of subsistence  Distinguish between the three systems of exchange

Economic Systems in the Bible

Foraging, horticulture, pastoralism, agriculture, and market systems are all depicted in Scripture in positive and negative ways.

God calls people to be generous in every system, caring for the poor and economically vulnerable.