Features (characteristics) of the Subsistence sector
- There is limited or no specialization and division of labour.
- There is use of back ward and out dated technology. For example use of hoes in the agriculture sector.
- Production is carried out on a very small scale with low output levels.
- The sector is mainly comprised of semi-skilled and unskilled labour in the production process.
- Production of low quality output due to use of poor production techniques.
- There is dependency on family labour in the production process.
- There is low labour productivity due to the use of poor techniques of production.
- The predominant system of exchange is through barter trade. That is exchange of goods for goods.
- There is absence of profit motive. Individuals simply produce for basic survival.
- There is high degree of conservatism. Production activities are greatly influenced by social attitudes and cultural beliefs.
- Land is the basic factor of production characterized by diminishing returns
CATEGORIES Economics
TAGS Dr. Bbosa Science
