ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Public service are available at little or no cost.
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It discourages new ideas and new ways of doing things
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it has a great deal of economic freedom
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It provides workers with few incentives to work hard
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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: -What are the characteristics of a traditional economy? The most common characteristic of a traditional economy is that it is family-centric. Another common characteristic is that the community obtains goods by hunting, fishing, or farming. Another characteristic is that traditional economies typically do not trade.
Detailed explanation-3: -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-4: -Traditional economy disadvantages are as follows: Starvation: People may starve from food shortage if there is a lack of agricultural, hunting, or fishing produce. Risk of Exploitation: Developed economies. read more often invade underdeveloped economies to exploit the land and natural resources.
Detailed explanation-5: -It isolates the people within that economy. Large outside economies can overwhelm a traditional economy. It offers few choices. There may be a lower overall quality of life. It creates specific health risks. Unpredictability creates survival uncertainties. More items •05-Aug-2017