Subsistence economy

A subsistence economy is an economy directed to basic subsistence the 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 and relies on natural resources to supply for basic needs through hunting, gathering, in addition to 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, ago the number one cities, all 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 progress relatively unchanged, ranging from uncontacted peoples, to marginalized areas of developing countries, to some cultures thatto retain a traditional economy.

Capital can be broadly defined as assets invested with the expectation that their value will increase, usually because there is the expectation of profit, rent, interest, royalties, capital relieve oneself or some other set of return. However, this type of economy cannot ordinarily 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.