Geography 2152F/G Study Guide - Takers, Effective Demand, Amartya Sen

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Involves widespread scarcity of food: caused by a lack food or difficulties in food distribution. May be worsened by climate fluctuations and extreme political conditions. Usually accompanied or followed by a regional malnutrition, starvation, epidemic and increased mortality. In an exchange economy, a family"s ability to buy food depends on the rates at which its labour and other possessions can be exchanged multilaterally or bilaterally with other commodities. Whether or not a family has something to eat depends on what it can sell and the prices of food. Represent a comprehensive picture of exchange possibilities faced by groups of people and reflect the institutional structure of the economy. The presence of a monopoly and other restrictions also makes prices depart from exchange entitlements. Fee when famines are caused by the breakdown of the ability of a person to exchange his entitlements rather than due to a shortage in food availability.

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