Chapter 7.1 Evolution of Work (Social Institution - Economy)
Economy: the science of choice for decisions that organize production, distribution and consumption of goods and services within a society.
Production: creation of goods and services
Distribution: how the goods and services are delivered
Consumption: using goods and services
(1) Resources (labour, capital, natural, ingenuity) > (2) Production System > (3) Goods and Services > (4) Markets > (5) Consumers
Historical Stages
(I) Hunting and Gathering Society - nomadic; subsistence economy: an economy that produces goods to sustain workers for a short time, no surplus (leftover goods)
(II) The Agricultural Revolution - surplus of food; division of labour (some grew food, some were involved in craftsmanship, specialization)
(III) The Industrial Revolution - the transformation of society resulting from the bulk of the working population turning from agriculture to industry; technological changes.
4 innovations:
(i) Mechanization: the introduction of machinery in factories
(ii) Centralization, Specialization, Mass Production
(iii) Wage Labour; Labour unions (organized associations of workers formed to protect and further their rights and intersts and to bargain collectively with employers)
(iv) Standard of Living, Quality of Life, International Trade
Post-industrial economy
(IV) A Predominent Service Sector: more people are involved in health care, education, banking and commerce, sales, administration, etc.
(V) An Information Revolution - the transformation of society as a result of technologies such as computer, Internet and other communication innovations.
- created global economy, in which both goods and information cross national borders with few restrictions.
- convergence: the merging of a variety of communication technologies (newspapers, TV, etc.) into one medium.
Advantages: efficiency, convenience
Disadvantages: monopoly, bias