Introduction to Economic Anthropology
Expert-defined terms from the Professional Certificate in Economic Anthropology course at London School of Business and Administration. Free to read, free to share, paired with a globally recognised certification pathway.
Introduction to Economic Anthropology Glossary #
Introduction to Economic Anthropology Glossary
Barter #
Barter is the exchange of goods or services for other goods or services without using money as a medium of exchange. This form of trade has been prevalent in many societies throughout history as a way to acquire necessary items.
Capitalism #
Capitalism is an economic system where private individuals or corporations own and control the means of production for profit. It is characterized by free markets, competition, and the pursuit of profit as the driving force of the economy.
Commodity #
A commodity is a raw material or primary agricultural product that can be bought and sold. Commodities are often standardized and interchangeable with other goods of the same type, such as oil, gold, or wheat.
Cultural Ecology #
Cultural ecology is the study of how human societies adapt to their environment and how their culture shapes their relationship with nature. It examines how cultural practices influence resource management and sustainability.
Economic Anthropology #
Economic anthropology is a subfield of anthropology that focuses on the study of economic systems, institutions, and behavior in human societies. It explores how people produce, distribute, and consume goods and services.
Economic Development #
Economic development refers to the process of increasing the economic well-being and quality of life of a community or country. It involves improving infrastructure, education, healthcare, and other factors that contribute to economic growth.
Economic System #
An economic system is the structure and organization of production, distribution, and consumption of goods and services within a society or country. Different economic systems include capitalism, socialism, and mixed economies.
Gift Exchange #
Gift exchange is a form of economic transaction where goods or services are given without an explicit expectation of immediate return. It is often used to establish or strengthen social relationships and obligations.
Market Economy #
A market economy is an economic system where prices are determined by supply and demand, and economic decisions are made by individuals and businesses in a competitive market. It is also known as a free-market economy.
Means of Production #
The means of production are the resources and tools used to produce goods and services, such as land, labor, capital, and technology. Ownership and control of the means of production are central to economic systems.
Neoclassical Economics #
Neoclassical economics is a school of economic thought that emphasizes supply and demand as the primary forces driving economic behavior. It focuses on rational decision-making by individuals and market efficiency.
Reciprocity #
Reciprocity is a form of exchange where goods or services are given with the expectation of a return of equal value. It can take the form of generalized reciprocity (giving without expectation of return), balanced reciprocity (exchange of equal value), or negative reciprocity (seeking to gain more than given).
Subsistence Economy #
A subsistence economy is an economic system where people produce enough to meet their basic needs for survival, with little or no surplus for trade or accumulation. Subsistence economies are often found in traditional societies and rural areas.
Sustainability #
Sustainability is the ability to maintain or preserve resources for future generations by balancing economic, social, and environmental considerations. It involves using resources in a way that does not deplete or harm the environment.
Traditional Economy #
A traditional economy is an economic system based on customs, traditions, and cultural practices that have been passed down through generations. It often involves subsistence farming, barter, and limited use of money.
Utility #
In economics, utility refers to the satisfaction or benefit that individuals derive from consuming goods or services. It is often measured in terms of the level of happiness or well-being that a person experiences from a particular choice.
Value #
Value in economics refers to the worth or importance that people assign to goods and services. It can be determined by factors such as scarcity, utility, and social norms. The value of a good or service influences pricing and consumer behavior.
Informal Economy #
The informal economy refers to economic activities that are not regulated or taxed by the government. It includes a wide range of activities such as street vending, home-based businesses, and under-the-table employment.
Formal Economy #
The formal economy consists of economic activities that are legally recognized, regulated, and taxed by the government. It includes businesses, corporations, and individuals who operate within the legal framework of the country.
Division of Labor #
The division of labor is the specialization of tasks and roles within a society or organization. It allows individuals to focus on specific skills or occupations, leading to increased efficiency and productivity.
Market Exchange #
Market exchange is the buying and selling of goods and services in a competitive market where prices are determined by supply and demand. It is a key feature of market economies and plays a central role in the allocation of resources.
Subsistence Agriculture #
Subsistence agriculture is a farming practice where farmers produce food primarily to feed themselves and their families, with little surplus for trade. It is often practiced in rural areas and traditional societies.
Microeconomics #
Microeconomics is the branch of economics that focuses on individual decision-making by households, firms, and consumers. It examines how individuals allocate resources, make choices, and interact in markets.
Macroecomics #
Macroeconomics is the branch of economics that studies the economy as a whole, including national income, output, employment, inflation, and economic growth. It analyzes aggregate trends and policies that influence the overall economy.
Consumerism #
Consumerism is a social and economic ideology that emphasizes the acquisition and consumption of goods and services as a primary source of satisfaction and identity. It often leads to increased consumption and materialism.
Globalization #
Globalization is the process of increasing interconnectedness and integration of economies, cultures, and societies on a global scale. It involves the flow of goods, services, information, and people across national boundaries.
Market Failure #
Market failure occurs when the allocation of resources in a market is inefficient, leading to a suboptimal outcome. It can result from externalities, imperfect competition, information asymmetry, or public goods.
Informal Sector #
The informal sector refers to a segment of the economy that operates outside of formal regulations and official oversight. It includes self-employed individuals, small businesses, and unregistered enterprises.
Formal Sector #
The formal sector consists of businesses and activities that are registered, regulated, and taxed by the government. It includes large corporations, public institutions, and workers with formal employment contracts.
Development Anthropology #
Development anthropology is a subfield of anthropology that focuses on the study of social and cultural factors that influence development policies and practices. It examines how development projects impact local communities and cultures.
Market Forces #
Market forces are the factors that influence supply and demand in a market economy, such as competition, prices, consumer preferences, and technology. They drive the allocation of resources and shape economic outcomes.
Price Mechanism #
The price mechanism is the process by which prices of goods and services are determined in a market economy through the interaction of supply and demand. Prices signal information about scarcity, value, and preferences.
Resource Management #
Resource management is the planning, allocation, and utilization of natural resources, human resources, and capital to achieve specific economic or environmental goals. It involves balancing competing interests and needs.
Market Segmentation #
Market segmentation is the process of dividing a market into distinct groups of consumers with similar characteristics, preferences, or behaviors. It allows businesses to tailor products and marketing strategies to specific target audiences.
Monetary System #
A monetary system is the set of rules, institutions, and mechanisms that govern the creation, circulation, and exchange of money within an economy. It includes currency, banks, financial markets, and central banks.
Value Chain #
A value chain is the sequence of activities and processes involved in producing, distributing, and selling a product or service to consumers. It includes all steps from raw materials to the final product in the hands of the customer.
Market Structure #
Market structure refers to the characteristics and organization of a market, including the number of sellers, buyers, competition, and barriers to entry. Different market structures include perfect competition, monopoly, oligopoly, and monopolistic competition.
Supply Chain #
A supply chain is the network of organizations, individuals, activities, information, and resources involved in producing and delivering goods and services to consumers. It includes suppliers, manufacturers, distributors, and retailers.
Externalities #
Externalities are the unintended consequences of economic activities that affect third parties not directly involved in the transaction. They can be positive (benefits) or negative (costs) and can lead to market failures.
Resource Curse #
The resource curse is a phenomenon where countries rich in natural resources experience negative economic, social, and political outcomes, such as corruption, inequality, and conflict. It is attributed to the mismanagement of resource wealth.
Market Power #
Market power is the ability of a firm or group of firms to influence prices, output, or competition in a market. It can result from barriers to entry, economies of scale, product differentiation, or collusion.
Supply and Demand #
Supply and demand are the fundamental forces that drive market economies. Supply refers to the quantity of goods or services that producers are willing to sell at a given price, while demand is the quantity that consumers are willing to buy at that price.
Economic Anthropologist #
An economic anthropologist is a scholar who studies the economic systems, institutions, and behaviors of human societies from a cultural and social perspective. They use ethnographic research methods to understand how people produce, exchange, and consume goods and services.
Informal Market #
An informal market is a sector of the economy where goods and services are exchanged outside of formal regulations, taxation, or oversight. It includes street vendors, flea markets, and other unregulated economic activities.
Formal Market #
A formal market is a regulated sector of the economy where goods and services are bought, sold, and traded within legal frameworks and institutions. It includes businesses, corporations, and financial markets.
Market Economy #
A market economy is an economic system where prices are determined by supply and demand, and economic decisions are made by individuals and businesses in a competitive market. It is also known as a free-market economy.
Subsistence Economy #
A subsistence economy is an economic system where people produce enough to meet their basic needs for survival, with little or no surplus for trade or accumulation. Subsistence economies are often found in traditional societies and rural areas.
Sustainability #
Sustainability is the ability to maintain or preserve resources for future generations by balancing economic, social, and environmental considerations. It involves using resources in a way that does not deplete or harm the environment.
Traditional Economy #
A traditional economy is an economic system based on customs, traditions, and cultural practices that have been passed down through generations. It often involves subsistence farming, barter, and limited use of money.
Utility #
In economics, utility refers to the satisfaction or benefit that individuals derive from consuming goods or services. It is often measured in terms of the level of happiness or well-being that a person experiences from a particular choice.
Value #
Value in economics refers to the worth or importance that people assign to goods and services. It can be determined by factors such as scarcity, utility, and social norms. The value of a good or service influences pricing and consumer behavior.
Informal Economy #
The informal economy refers to economic activities that are not regulated or taxed by the government. It includes a wide range of activities such as street vending, home-based businesses, and under-the-table employment.
Formal Economy #
The formal economy consists of economic activities that are legally recognized, regulated, and taxed by the government. It includes businesses, corporations, and individuals who operate within the legal framework of the country.
Division of Labor #
The division of labor is the specialization of tasks and roles within a society or organization. It allows individuals to focus on specific skills or occupations, leading to increased efficiency and productivity.
Market Exchange #
Market exchange is the buying and selling of goods and services in a competitive market where prices are determined by supply and demand. It is a key feature of market economies and plays a central role in the allocation of resources.
Subsistence Agriculture #
Subsistence agriculture is a farming practice where farmers produce food primarily to feed themselves and their families, with little surplus for trade. It is often practiced in rural areas and traditional societies.
Microeconomics #
Microeconomics is the branch of economics that focuses on individual decision-making by households, firms, and consumers. It examines how individuals allocate resources, make choices, and interact in markets.
Macroeconomics #
Macroeconomics is the branch of economics that studies the economy as a whole, including national income, output, employment, inflation, and economic growth. It analyzes aggregate trends and policies that influence the overall economy.
Consumerism #
Consumerism is a social and economic ideology that emphasizes the acquisition and consumption of goods and services as a primary source of satisfaction and identity. It often leads to increased consumption and materialism.
Globalization #
Globalization is the process of increasing interconnectedness and integration of economies, cultures, and societies on a global scale. It involves the flow of goods, services, information, and people across national boundaries.
Market Failure #
Market failure occurs when the allocation of resources in a market is inefficient, leading to a suboptimal outcome. It can result from externalities, imperfect competition, information asymmetry, or public goods.
Informal Sector #
The informal sector refers to a segment of the economy that operates outside of formal regulations and official oversight. It includes self-employed individuals, small businesses, and unregistered enterprises.
Formal Sector #
The formal sector consists of businesses and activities that are registered, regulated, and taxed by the government. It includes large corporations, public institutions, and workers with formal employment contracts.
Development Anthropology #
Development anthropology is a subfield of anthropology that focuses on the study of social and cultural factors that influence development policies and practices. It examines how development projects impact local communities and cultures.
Market Forces #
Market forces are the factors that influence supply and demand in a market economy, such as competition, prices, consumer preferences, and technology. They drive the allocation of resources and shape economic outcomes.
Price Mechanism #
The price mechanism is the process by which prices of goods and services are determined in a market economy through the interaction of supply and demand. Prices signal information about scarcity, value, and preferences.
Resource Management #
Resource management is the planning, allocation, and utilization of natural resources, human resources, and capital to achieve specific economic or environmental goals. It involves balancing competing interests and needs.
Market Segmentation #
Market segmentation is the process of dividing a market into distinct groups of consumers with similar characteristics, preferences, or behaviors. It allows businesses to tailor products and marketing strategies to specific target audiences.
Monetary System #
A monetary system is the set of rules, institutions, and mechanisms that govern the creation, circulation, and exchange of money within an economy. It includes currency, banks, financial markets, and central banks.
Value Chain #
A value chain is the sequence of activities and processes involved in producing, distributing, and selling a product or service to consumers. It includes all steps from raw materials to the final product in the hands of the customer.
Market Structure #
Market structure refers to the characteristics and organization of a market, including the number of sellers, buyers, competition, and barriers to entry. Different market structures include perfect competition, monopoly, oligopoly, and monopolistic competition.
Supply Chain #
A supply chain is the network of organizations, individuals, activities, information, and resources involved in producing and delivering goods and services to consumers. It includes suppliers, manufacturers, distributors, and retailers.
Externalities #
Externalities are the unintended consequences of economic activities that affect third parties not directly involved in the transaction. They can be positive (benefits) or negative (costs) and can lead to market failures.
Resource Curse #
The resource curse is a phenomenon where countries rich in natural resources experience negative economic, social, and political outcomes, such as corruption, inequality, and conflict. It is attributed to the mismanagement of resource wealth.
Market Power #
Market power is the ability of a firm or group of firms to influence prices, output, or competition in a market. It can result from barriers to entry, economies of scale, product differentiation, or collusion.
Supply and Demand #
Supply and demand are the fundamental forces that drive market economies. Supply refers to the quantity of goods or services that producers are willing to sell at a given price, while demand is the quantity that consumers are willing to buy at that price.
Economic Anthropologist #
An economic anthropologist is a scholar who studies the economic systems, institutions, and behaviors of human societies from a cultural and social perspective. They use ethnographic research methods to understand how people produce, exchange, and consume goods and services.
Informal Market #
An informal market is a sector of the economy where goods and services are exchanged outside of formal regulations, taxation, or oversight. It includes street vendors, flea markets, and other unregulated economic activities.
Formal Market #
A formal market is a regulated sector of the economy where goods and services are bought, sold, and traded within legal frameworks and institutions. It includes businesses, corporations, and financial markets.
Market Economy #
A market economy is an economic system where prices are determined by supply and demand, and economic decisions are made by individuals and businesses in a competitive market. It is also known as a free-market economy.
Subsistence Economy #
A subsistence economy is an economic system where people produce enough to meet their basic needs for survival, with little or no surplus for trade or accumulation. Subsistence economies are often found in traditional societies and rural areas.
Sustainability #
Sustainability is the ability to maintain or preserve resources for future generations by balancing economic, social, and environmental considerations. It involves using resources in a way that does not deplete or harm the environment.
Traditional Economy #
A traditional economy is an economic system based on customs, traditions, and cultural practices that have been passed down through generations. It often involves subsistence farming, barter, and limited use of money.
Utility #
In economics, utility refers to the satisfaction or benefit that individuals derive from consuming goods or services. It is often measured in terms of the level of happiness or well-being that a person experiences