Discuss primary sector production that occurs in preindustrial economies

Question

What will be an ideal response?

Answer 1

Hunting and gathering, horticultural and pastoral, and agrarian societies are all
preindustrial economic structures. Most workers in these societies engage in primary
sector production—the extraction of raw materials and natural resources from the
environment. These materials and resources are typically consumed or used without
much processing. For example, portions of contemporary sub-Saharan Africa have a
relatively high rate of exports in primary commodities, and foreign direct investment is
concentrated in mineral extraction. The division of labor is by age and gender. The
potential for producing surplus goods increases as people learn to domesticate animals
and grow their own food. In horticultural and pastoral societies, the economy becomes
distinct from family life. The distribution process becomes more complex, with the
accumulation of a surplus such that some people can engage in activities other than
food production. In agrarian societies, production is primarily related to producing
food. However, workers have a greater variety of specialized tasks, such as warlord
or priest. Once a surplus is accumulated, more people can also engage in trade.
Initially, the surplus goods are distributed through a system of barter—the direct
exchange of goods or services considered of equal
values by the traders. However, bartering is limited as a method of distribution;
equivalencies are difficult to determine because there is no way to assign a set value
to the items being traded. As a result, money—a medium of exchange with a
relatively fixed value—came into use in order to aid the distribution of goods and
services in society.