GS220 Study Guide - Final Guide: Cultural Relativism, Nationstates, Universal Declaration Of Human Rights
Document Summary
Raional choice theory : a person who acted raionally on complete knowledge out of self-interest and the desire for wealth. Money vital to working of market economy facilitates exchange. Nonmonetary economy: based on barter: people exchanging goods and services for other good and services directly, barter money credit and debit. Adam smith: money eliminates the double coincidence of wants. Double coincidence of wants: how do i know i"ll ind someone who wants what i have who also has what i want: market = specializaion. With specializaion, people realize life would be easier with a meta-commodity on hand for exchange (silver, gold = money) In market socieies, economic acion has been raionalized and disembedded from society: non-market exchange of goods: git exchange based on reciprocity (i. e. south paciic kula exchange; kwakiutl of paciic. Northwest potlatch: redistribuion: goods collected by a central igure or authority and redistributed (i. e. ancient egypt, premodern europe, no socieies work purely on the basis of barter.
