Answer :

Economic evolution involves origin, growth, and continuous development with expansion in various sectors, that contribute and run economies. It has evolved from ancient times through various stages to gain its current position. The various stages that economic evolution has gone through is as follows –


1. Hunting and fishing stage


2. Pastoral stage


3. Agricultural stage


4. Handicraft stage


5. Barter system stage


6. Money Economy stage


7. Town Economy stage


8. International Trade stage


Barter System Stage - During this step, money is not used as a medium of exchange in the economy. The distribution of goods and services occur when there is a direct exchange of goods and services for similar objects. Although essentially this form of exchange introduced the concept of business in the economy, it suffered from several disadvantages. It suffered from a lack of a common measure of value making it difficult to ascertain the ratio of exchange. It was also difficult to find two parties with similar wants to facilitate the exchange of goods. Perishable goods were often exchanged at lower values because of lack of proper storage facilities. All these difficulties led to the introduction of the money in the economy which allowed the further growth of the economy at a faster pace.


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