2007-06-20 03:35:06 · 3 answers · asked by Anonymous in Social Science ➔ Economics
Before the purchasing system was the barter system. People would trade the goods or services that they made for what they needed. Example: If you raised/sold chickens for your work, you would be pretty limited on what you could get for the chickens. Not everyone wants or needs chickens.
Moving away from the barter system allows for specialization. If you earn a wage (money) you can spend it on anything you want to. If you are a chicken farmer, you sell the chickens to the few people that want or need them and can use the cash to purchase whatever you need. Because you have the cash flow, you do not need to also raise cows, horses, goats, etc to meet a large diversity of consumers needs. By raising and selling just chickens, you will get better at it. In the end, you will be able to make more money (theoretically at least) by specializing in one thing.
2007-06-20 06:08:05 · answer #1 · answered by JJ 5 · 0⤊ 0⤋
Buying things are important to us humans, because we need and want to buy so much stuff today. Could you imagine, what our lives would be like without buying stuff?
2007-06-20 04:27:05 · answer #2 · answered by Anonymous · 0⤊ 0⤋
One's purchase is the other's one income...
No purchase no income => No income no purchase => No economy
2007-06-20 06:33:11 · answer #3 · answered by Can G 2 · 0⤊ 0⤋