The tendency for societies to revert to subsistence economies when the fabric of civilization breaks down is because:
A)Shops cannot operate when there is a risk of looting
B)Uncertainty reinforces the role of the family and family-based production
C)Specialization and the division of labor require an exchange economy which depends upon mutual trust and the rule of law
D)The modern economy requires money which requires a stable national government

Question

Quizplus · Accepted Answer

The modern economy and its division of labor require a reliable exchange economy based on mutual trust and the rule of law. If civilization breaks down and uncertainty increases, it becomes difficult to trust others and engage in this type of exchange. As a result, societies tend to revert to family-based production and subsistence economies. Money and a stable government are also required for the modern economy to function properly, but they are not the primary reasons for the shift towards subsistence.

The Tendency for Societies to Revert to Subsistence Economies When