UNT1: Early Econo Development & Emergence of Trade Cheat Sheet by Euphoria_

2. Later people domest­icated animals and set up farms in one area. Here they produces good for themselves and grazing for their cattle. They provided only for themse­lves.

2. The system of bartering was set up so that people could trade their surplus. People may have specia­lised in one area and struggled with another, this caused for them to swap for their neighbour.

a) Both parties must want to swap, b) agree on how much to swap for another product and c) Some products are difficult to divide.

a) You can hold and accumulate money, b) you can divide money into smaller units c) money holds it's value so people don't need to use it immedi­ately.

2. Initially people only needed skills which would help them secure food and water and parents would teach children these skills. Eventu­ally, with the system of bartering, specia­lis­ation become more popular.