Labor and voluntarily exchanged between “household” sellers and “firm” buyers is best classified as a:
a- Product market
b- Factor market
c- Rental market
d- System of reciprocity
The above mentioned scenario stated that labour and voluntarily if exchanged between the two terms which are household sellers and firm buyers, can be best described as. The correct answer is option D which states “System Of Reciprocity”
It is first very vital to understand what actually does Reciprocity mean ?Reciprocity is a situation or a process where a particular person for another person, for various reasons known only to that particular person with the assumption that, this act of the particular person will most likely be reciprocated generally indirectly, in the near future.
Reciprocity can actually be of two types, positive and negative.
Let us try and understand this concept in detail with the help of an example to be crystal clear.
An example of a very basic positive Reciprocity: In the morning, when I was walking towards the entrance of the office gate, both of my hands were full. In my right hand I was carrying my ofice bad and in my left arm I was carrying a hot cup of coffee. As I reached near the door, I was not able to pull the door as both of my hands were full. However, a stranger whom I had never met, came near me to open the door and kept it open till the time I did not enter, so that he could help me to go inside the office smoothly as both my hands were occupied with things. This gesture will remain with me till the time I don’t reciprocate it back to someone. This way without second thoughts I will help anybody who comes across such a situation. I would not hesitating in helping someone who is caught in a similar situation as I was. When I help a stranger, that stranger will then help another stranger. This is an on going cycle and this will keep carrying on.
Negative reciprocity: Let us take an example of a negative reciprocity. For an instance, one of my colleague asked me for a little help as he was caught somewhere else, I left my important work to help him as he was on a strict deadline. It ended up taking a lot of time of mine but I still helped my colleague. Once the work was done, the senior reviewed his work and gave him an excellent feedback for the work done by him, which was actually done by me. My colleague did not even once told his senior that I was the one who helped, rather took all the credits. Moreover, I was scolded for not finishing my work on time. This created a negative impact in my mind and I had thought of not helping anyone in a similar situation. negative reciprocity actually discourages us to have positive thoughts and encourages us to have negative thoughts for performing good deeds.
However, fortunately many of the reciprocity is positive. It is very beneficial to have a healthy atmosphere near us. Positive reciprocity helps to create a society which believes in befitting one other without creating any ill-effect. The benefit may not be seen immediately but it can be witnessed in the long run. Positive reciprocity acts like a contagious diseases, if one person starts it, then there is no stoppage and it just keeps on increasing and increasing without putting a full stop.