Basic Economics in simple terms....

1. Layman Economics -Vengie

3. Low productivity

4. Self-sufficient

6. Higher productivity & Specialisation

8. All products not harvested at the same time – so had to keep count of who owes how much to whom

9. Village central ledger to keep count of all items

10. Receipts were issued when items were sold in

11. Receipts later exchanged for other goods

12. Every item was counted as equal

14. Everyone wanted Potatoes

15. People were ready to pay more to get hold of Potatoes – Price increase

16. Supply

17. More people started growing Potatoes

18. Potatoes were then available in plenty – Price dropped

20. All had similar capacity to produce any product / service

21. All had ability to switch production to bring supply & demand to equilibrium

22. All worked same number of hours and had access to same resources

23. Reality – None of the above is true – Inequality

24. Rich – Higher capacity / Control of Resources / Higher Capability