ECONOMICS
ECONOMIC SYSTEMS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
market economy
|
|
|
traditional economy
|
|
|
mixed economy
|
|
|
socialist economy
|
Detailed explanation-1: -Also known as a subsistence economy, a traditional economy is defined by bartering and trading. A little surplus is produced and if any excess goods are made, they are typically given to a ruling authority or landowner.
Detailed explanation-2: -Traditional economic theory relies on three fundamental assumptions: People are rational. People make decisions based on self-interest. People will change their thoughts and beliefs based on new information.
Detailed explanation-3: -In 2022, The World Population Review labeled Brazil, Haiti, Alaska, Yemen, Canada, and Greenland as traditional economies. Most conventional economic systems are found in Asia, Africa, Latin America, and the Middle East.
Detailed explanation-4: -People in the economy have conventional occupations like farming, fishing, hunting or cattle-rearing. There is no wastage in the traditional economy because the people in the economy consumes whatever they produce or gather.