Question

Summarize the development of and changes to economic systems from preindustrial society to today. Include a discussion of the economic order and the importance of economic activity. How has the division of labor changed, and what are social consequences of surplus wealth?

Answer 1

Answer:Pre-industrial societies are societies of before industrial revolution.Pre-industrial society, agriculture is main source of economy .Labour might be less because everyone doing their work themselves.Also social class can be less varied.Mostly there are poor people, those who rich would be very rich.

Economic system today is alocate resources and distribute it country wide as well as globally.Now, biggest MNC's of the world is using different countries to fullfill their resources and organization goals.Now a days various economic agancies and institution remain in contact as global economy is merely a village.

Economic Order:A company should purchase in order to minimize its inventory costs.This is a inventory managment job to count amount of factor of production like labor,capital,raw material need to organization goals.There should not be excess inventory.

Economic Activity: is an activity of making,selling and buying goods and services for people of all classes.The involvement of money and goods and services are part of economic activities.Business is an economic activitiy provides goods and service to common people.Employee also fulfill one more type of economic activity.Employee complete their assigned task and in terun money provided to them.

Division of Labour:it is a necessary proces of activity.It allow people to work according to their specialization.Thus it makes worker good in their work reducing any wastage.Division of labour also widend as skilled worker work on computer in AC room.But unskilled worker works in a factory,which involve physical work but get less salary or wages than skilled worker.

Social concequances of surplus wealth is mostly negative because surplus wealth goes to a very small section of society.Wealth gaps can rise inequalities in society which leads to social unrest lately.Also a lower level of economic growth when human capital is neglected for high-society consumption only.