What Are the Advantages and Disadvantages of a Subsistence Economy

question 31

Essay

What are the advantages and disadvantages of a subsistence economy based on farming?

Interpret the significance of efficient versus inefficient points on the PPC and the potential for economic growth.

Evaluate the impact of labor productivity and investment in physical capital on an economy's production possibilities.

Understand the marginal thinking principle and its application in making economic decisions involving trade-offs.

Understand the concept of the production possibilities curve and its implications for economic efficiency and growth.

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Definitions:

Skills

Abilities and expertise developed through practice and education.

Consumer-To-Consumer Retail

Consumer-to-consumer retail involves transactions between consumers, typically facilitated by third-party platforms or marketplaces that enable individuals to sell and buy products or services from one another.

Peer-To-Peer Transaction

Direct exchanges of goods, information, or services between individuals without the involvement of a central authority or intermediary.

Online Marketplace

A virtual platform that connects buyers and sellers, facilitating the exchange of goods, services, or information over the internet.