Final answer:
The potlatch ceremony in the Pacific Northwest was an event where hosts demonstrated their generosity and social status by giving away wealth, thus increasing their prestige.
Step-by-step explanation:
As a ritual ceremony, the potlatch serves to establish prestige and social status by demonstrating a person's capacity for generosity and the ability to give away wealth. The potlatch ceremony was a foundational socio-political event among the Indigenous peoples of the Pacific Northwest, wherein hosts displayed their status and importance through the lavish distribution of gifts, food, and entertainment to their guests. In this cultural context, wealth was measured not by the accumulation of possessions but by how much one could afford to bestow on others. A successful potlatch indicated the hosts' generosity and subsequently increased their social standing within the community.