ECONOMICS
ECONOMIC SYSTEMS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Profit motivates individuals to set up private businesses
|
|
|
The interplay of supply and demand regulates prices
|
|
|
Tradition and customs greatly influence economic decisions
|
|
|
Government directs and controls the means of production
|
Detailed explanation-1: -In an traditional economy individuals and tribes make the decisions. Often these decisions are based on customs, traditions, and religious beliefs.
Detailed explanation-2: -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: -A traditional economy is a system that relies on customs, history, and time-honored beliefs. Tradition guides economic decisions such as production and distribution. Traditional economies depend on agriculture, fishing, hunting, gathering, or some combination of the above. They use barter instead of money.
Detailed explanation-4: -Characteristics of a Traditional Economy Traditional economies are often based on one or a few of agriculture, hunting, fishing, and gathering. Barter and trade is often used in place of money. There is rarely a surplus produced. In other words, most of the goods and services are fully used.