ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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traditional
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command
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market
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None of the above
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Detailed explanation-1: -The main advantage of a traditional economy is that the answers to WHAT, HOW, and FOR WHOM to produce are determined by customs and tradition. The main disadvantage of a traditional economy is that it tends to discourage new ideas and new ways of doing things.
Detailed explanation-2: -Mixed systems are the norm globally. Supposedly, a mixed system combines the best features of market and command systems.
Detailed explanation-3: -Definition. 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-4: -Traditional economies are largely underdeveloped economies that are characterized by the use of primitive equipment and crude methods. A market economy is more defined and developed. This type of economy is largely based on the laws of demand and supply to the exclusion of government interference.