ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Market Economy
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Mixed Economy
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Command Economy
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Traditional Economy
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Detailed explanation-1: -It is based on and gives significance to the customs and traditions of a country’s citizens. People engage in trade or barter systems for their survival, and the production, distribution, and policies are influenced by culture. It is vastly based on agriculture.
Detailed explanation-2: -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-3: -In an traditional economy individuals and tribes make the decisions. Often these decisions are based on customs, traditions, and religious beliefs.
Detailed explanation-4: -Each economy functions based on a unique set of conditions and assumptions. Economic systems can be categorized into four main types: traditional economies, command economies, mixed economies, and market economies.
Detailed explanation-5: -Mixed Economic System. The mixed economic system, also known as the dual system, combines some of the characteristics of traditional, command, and market economies (Amadeo, 2020).