ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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central government control, central planning, price controls
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diplomacy, labor participates in managerial decisions
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private ownership, social control of division of labor
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direct trade, no competition, relies on customs
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Detailed explanation-1: -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-2: -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-3: -Traditional systems focus on the basics of goods, services, and work, and they are influenced by traditions and beliefs. A centralized authority influences command systems, while a market system is under the control of forces of demand and supply. Lastly, mixed economies are a combination of command and market systems.
Detailed explanation-4: -A traditional economic system focuses exclusively on goods and services that are directly related to its beliefs and traditions. A command economic system is characterized by a dominant centralized power. A market economic system relies on free markets and does not allow any government involvement.