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Achieving Economic Goals

Achieving Economic Goals. Chap 7: Markets, Trade, and Exchange. Three Basic Economic Principles. Market Exchange Redistribution Reciprocity. Market Exchange . Western System. Exchange currency, commodities, or services of equal value Currency holds value until you find what you want

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Achieving Economic Goals

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  1. Achieving Economic Goals Chap 7: Markets, Trade, and Exchange

  2. Three Basic Economic Principles • Market Exchange • Redistribution • Reciprocity

  3. Market Exchange Western System • Exchange currency, commodities, or services of equal value • Currency holds value until you find what you want • Western System has fixed prices often based on supply and demand • Efficiency is valued not social interaction

  4. Market Exchange Non-Western System • Non-Western worth based on what people will pay • Bargaining is expected • Social interaction is valued not efficiency

  5. Redistribution • Collecting • Storing • Organizing • Processing • Repackaging • Redistributed

  6. Redistribution • Leveling Mechanism • Taxes • Charities • Insurance • Campuses

  7. Reciprocity • Generalized – Doing things for other with no expectation of payment • Balanced – social relationship with shared resources flowing back and forth • Negative – Taking advantage of others

  8. Flow of Wealth between & Across Generations Western Pattern Non-Western Pattern • Flows DOWN generations • Parents Responsible for EVERYTHING • More children the further limited resources are spread • Conspicuos consumption • Flows UP and ACROSS Generations • Children become economic assets • More children equal more wealth • More prestige

  9. Money • Repository of Value • Currency • Commodities • Cowrie Shells • Trade Beads • Cigarettes • Electronic Data

  10. Concepts of What Can Be Owned? • Land and Water • Takers and Leavers • Human ExemptionalistParadigm • New Environmental Paradigm (old paradigm)

  11. Concepts of What Can Be Owned? • Land and Water • Takers and Leavers • Human ExemptionalistParadigm • New Environmental Paradigm (old paradigm) • People • Slaves • Chattel • Indentured • Indebted • Children

  12. Concepts of What Can Be Owned? • Non-Human Animals

  13. Social Life of Things • Non-Economic Values of Things • Meaning and Value • Ritual worth • Sentimental worth • Moral worth • Intellectual property

  14. How Are Things Owned • Private/Individual • Corporate • Usufruct • Government

  15. Goals and Values in Economic Behavior • Maximizing Profit • Minimizing Risk • The Favor Bank • Maximizing debts owed you • Minimizing debts owed others • Social Exchange Theory

  16. Economic Transactions and Social Relationships • Maximizing Social Relationships • Minimizing Social Relationships

  17. What do people get from exchanges? • Social Prestige • Self Esteem • Cosmic Reward • Tax Breaks • Enjoyment

  18. Wealth and Status • Ascribed Status • Achieved Status • Wealth, Prestige, Power • Status Inconsitency • Economic Irrationality • Non-Economic Benefits

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