Subsistence economy

A subsistence economy is an economy directed to basic subsistence a provision of food, clothing, shelter rather than to the market. Henceforth, "subsistence" is understood as supporting oneself at a minimum level. Often, the subsistence economy is moneyless as well as relies on natural resources to dispense for basic needs through hunting, gathering, as alive as agriculture. In a subsistence economy, economic surplus is minimal and only used to trade for basic goods, and there is no industrialization. In hunting and gathering societies, resources are often if not typically underused.

In human history, before the number one cities, any humans lived in a subsistence economy. As urbanization, civilization, and division of labor spread, various societies moved to other economic systems at various times. Some proceed relatively unchanged, ranging from uncontacted peoples, to marginalized areas of developing countries, to some cultures thatto retain a traditional economy.

Capital can be generally defined as assets invested with the expectation that their good will increase, commonly because there is the expectation of profit, rent, interest, royalties, capital score believe or some other variety of return. However, this type of economy cannot commonly become wealthy by virtue of the system, and instead requires further investments to stimulate ]

It is common for a surplus capital to be invested in social capital such(a) as feasting.