Agricultural economies depend on discoveries and technologies to shift from subsistence to prosperity. The Banaue Rice Terraces were carved into the landscape by hand by the ancestors of the Ifugao people. Rice needs flat, completely submerged fields in which to grow, so mountainous areas would not be naturally suited for rice. By transforming the mountainsides and maintaining a massive irrigation system, these farmer-engineers produced far more rice than the landscape would have normally yielded. Interestingly, the economy of this location is shifting again, as tourism to the terraces grows faster than farming them.
Our earliest ancestors lived as hunter-gatherers. Small groups of extended families roamed from place to place looking for subsistence. They would settle in an area for a brief time when there were abundant resources. They hunted animals for their meat and gathered wild fruits, vegetables, and cereals. They ate what they caught or gathered their goods as soon as possible, because they had no way of preserving or transporting it. Once the resources of an area ran low, the group had to move on, and everything they owned had to travel with them. Food reserves only consisted of what they could carry. Many sociologists contend that hunter-gatherers did not have a true economy, because groups did not typically trade with other groups due to the scarcity of goods.
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