ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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One person runs the thing and has all control
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Everything gets passed down, from one generation to the next
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One person runs the business, but they have a set of rules they have to follow in order to make it work.
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None of the above
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Detailed explanation-1: -A traditional economy is a system that relies on customs, history, and time-honored believes. Tradition guides economic decisions such as production and distribution. Societies with traditional economies depend on agriculture, fishing, hunting, gathering, or some combination of them.
Detailed explanation-2: -Countries that use this type of economic system are often rural and farm-based. 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-3: -Traditional Economy-The production of goods and services are based on a particular society’s traditional customs or beliefs; people will make what they have always made and will do the same work their parents did; exchange of goods is done through bartering.
Detailed explanation-4: -Traditional economies have several characteristics that are unique compared to modern economies. They are geographically and locally based, they have a bartering system, they have little to no surplus or goods, and they don’t waste any parts of goods they produce.
Detailed explanation-5: -Traditional economies are those in which customs and traditions are more important than money. Traditional economies are often based on hunting, fishing and gathering or farming. Often in a traditional economy, there is no surplus and no resources, and bartering is used to exchange for needed goods.