We tend to think of costs as the money we pay for things. Does that mean, however, that there would be no costs in a primitive society that did not yet use money or in a modern cooperative community, where people produce goods and services they use and do not charge each other for them?

Question

31-01-2020
Social Studies

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We tend to think of costs as the money we pay for things. Does that mean, however, that there would be no costs in a primitive society that did not yet use money or in a modern cooperative community, where people produce goods and services they use and do not charge each other for them?

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mandhlelaz mandhlelaz · Answer 1 · 2020-02-01T15:29:29+01:00

Answer&Explanation:

No, There is always a cost of exchange even if it is not money. How crucial the product or good is will have an impact on its value. Even during free exchange but one has to actual contribute something that can be exchanged but with free exchange comes an issue of scatcity because people may tend to take more than what they need which will increase the value of the goods and make it hard for the person to obtain those goods.