Notes of 9th Economics Chapter 1: Evolution of Economic Life

Chapter # 1 Evolution of Economic Life

What is the hunting & gathering stage in the evolution of economic life?

The man was unknown to civilized life in the beginning and lived upon hunting. He invented tools like hammers, knives and arrows to kill the animals for food. Sometimes he left without food thus catching animals alive and started gathering animals. It is called the hunting and gathering stage.

What is the agriculture and handicraft stage?

Man found a regular supply of water near the river. They settled down there and grew the plants of food and fruits. In this way, villages came into being near rivers like Moen-Jo-Daro in Pak. This stage gave the concept of division of labour in tribes. The constant efforts of man have awarded him with the present economic progress and prosperity.

Name the concept created during the agriculture and handicraft stage.

Following are the names of concepts that were created during the agriculture and handicraft stage:

1. Division of Labour.
2. Feudal Exchange Economy.
3. Industrial Stage.
4. Private and Public forms of ownership.

What are the auxiliaries to trade?

Following are the auxiliaries(aide) to trade:

• Banking
• Insurance.
• Transportation.
• Warehousing.
• Middle man
• Advertising.
• Communication System.

Name the professions that existed during the industrial stage in the evolution of economic life.

Following are the professions that existed at the time of industrial stage:

1. Goldsmith.
2. Blacksmith.
3. Carpenter.
4. Weaver.
5. Potters

Name the rewards of the Industrial Revolution.

The following are the rewards of the industrial revolution:

1. Radio.
2. T.V.
3. Computer.
4. Joint Stock Company.
5. International Trade.
6. Monetary system.

What is capitalism?

It is an economic system and a way of production in which private individuals mostly own trade, industries and all the means of production. This system operates for profit earning. That’s called capitalism. For example in the USA, Canada, and Chile.

What are the characteristics of Capitalism?

The following are the characteristics of Capitalism:

1. It allows you private property.
2. It allows you the freedom to do business.
3. It allows you freedom of agreement with others.
4. It sets the price mechanism from the market.
5. It provides more chances for earning profit for the business.

What are the demerits of Capitalism?

1. Wealth works in a few hands only.
2. Increase in numbers of the working class.
3. Huge amounts are spent on advertising.
4. Business always works for money motives rather than human relatives.
5. Dearness increases at a very fast speed.

What is the difference between public ownership and private ownership?

Under private ownership an economic system and a way of production in which private individuals mostly own trade, industries and all the means of production. This system operates for profit earning. That is also called capitalism, for example in the USA, Canada, and Chile.

Under public ownership, all means of production are owned and controlled by the government authorities. The business under this type of system is not for earning profit but for the welfare of the people. People have no living class conflict. This is also called socialism, for example in China, North Korea, and Cuba.

What is Socialism?

In this system, all means of production are owned and controlled by the government authorities. The business under this type of system is not for earning profit but for the welfare of the people. People have no living class conflict. This is called socialism. For example in China, North Korea, and Cuba.

What are the characteristics of Socialism?

The following are the characteristics of Socialism:

1. The government works for the welfare of the people.
2. The government gives food, housing and free medical aid.
3. There are no people living in class conflict.
4. National income is distributed in the favor of people.
5. Government control all the factors for production in any form of business.

What are the demerits of Socialism?

1. People have no power to decisions.
2. People are mostly at the mercy of the government.
3. If corrupt people come into power, the public will suffer.
4. Liking and disliking people is not important.
5. People are not allowed to have private properties.

Describe the division of labour.

The concept of division of labour comes from the agriculture and handicraft stage. In that stage, each group of people lived together, dividing the responsibilities of economic activity, and social and political duties as some people chose fishing, some hunting, some wood cutting and some of them become heads of different professions.

What is a feudal exchange economy?

The concept of a feudal exchange economy comes from the agriculture and handicraft stage. Each of the tribes used to choose a tribal chief and he must have been the wisest as well as the strongest man of his tribe. The feudatories of nearby tribes decided to exchange their surplus (extra) production. So, the feudal exchange economy comes into existence.

Write a detailed note on the industrial stage.

With the increase in population, human needs are also increasing at a rapid rate. With the help of masters, artisans introduced small-scale industrial units. It was the beginning of the industrial stage. Then after a very long time, energy resources were discovered which strengthened the progress of the industrial stage. Goods were produced on a large scale.

We can divide the industrial stage into three periods. The first period started when man used to lead an organized life. The second period gave birth to particular professions like blacksmith, goldsmith, and carpenter. The modern industrial system can be called the third period of the industrial stage. It started with the mass production of goods and took advantage of minerals, oil and gas.