In this economy, community members typically use simple tools to plant and harvest crops. food supplies are supplemented by hunting animals and gathering plant materials. members trade with each other to obtain needed goods, as few people hold currency. little economic growth occurs. what type of economy is being described?
A traditional economy is one that relies on historical methods, customs, and beliefs to develop. It is generally more common in developing countries because it is an economy based on rural activities such as agriculture, fishing and hunting. Because it is an economy that develops around a tribe or a family, it is customary for production to be for consumption only, so there is no surplus and little money movement.
a traditional economy
A traditional economy is described.
A traditional economy is a system in which history traditions, customs and beliefs based in long lasting experience, drive economic choices and activities such as production or distribution. Traditional economies are based on subsistence activities: agriculture, animal husbandry, hunting, fishing, etc. Nowadays this system can be found in developing countries with emerging economies. Traditional economies are considered the starting point of all economies. At some moment, when certain conditions are met, development will be triggered, which means that there will be a transition from this kind of economy to a modern one.
A typical economy for the rural and traditional community is a traditional economy. The characteristics of this type of economy are not mass and serial production, such as free market and other types of economics. Production is based on personal needs, and according to personal possibilities. It does not belong to highly developed economies. There is not a large amount of currency, so there is no investment in that sense, i.e. there is no profit. Any surplus of goods is exchanged for goods that are needed. In the traditional economy, everyone has a specific place and role, there are no unpredictable market conditions, but there are natural ones.
The answer is: A.
a. a traditional economy
In a traditional economic system, traditional customs and beliefs have a great influence on how trade and commerce is conducted. It is the basic form of an economic system. Societies that have traditional economies depend on agriculture, gathering, fishing, hunting or any combination for sustainability.
Traditional economies are mostly found in developing and emerging countries in the African and Asian continents. The monetary system is not fully developed, giving room to use of barter trade. There is no wealth accumulation as the system seeks to fulfill fundamental basic needs.
The correct answer is - A.) a traditional economy.
The traditional economy is an economy type where little or no changes appear over prolonged periods of time, and if there are any changes, they are minimal and they do not affect anything in the economy seriously.
The economy that is described is clearly a traditional economy, that has retained its traditional traits, and hasn't been modernizing and evolving as the economies in the rest of the world. It may seem as primitive economy even to most people, though in certain conditions it may actually work properly to a certain level. It has to be taken in consideration that progress in this type of economy is not really a familiar term.
The correct answer is A. Traditional economy.
The traditional economy is a set of productive practices based on the subsistence of a community characterized by mainly manual and craft activities such as fishing, hunting, agriculture, and animal husbandry. Aditionally, in the traditional economy does not exist private property, and all members of the community work for the benefit of all equally. This economic model is characteristic of the first human communities after the transition from nomadism to sedentary lifestyle when the human discovered the agriculture. On the other hand, these communities used the barter to exchange goods with others, because they did not have money or an established exchange good to do those transactions. According to the previous information, it can be affirmed that the type of economy described in the question is A. the traditional economy.
A traditional economy is an economic model of little complexity, characterized basically by subsistence production. In this model, there are no firms, people produce little and exchange their surplus for the sole purpose of meeting their basic basic needs. There was no profit.
The traditional economy can be considered the first known economic system, but to this day it can be observed in underdeveloped rural communities. The traditional economy was the initial model that gave support to the development of more complex models, such as the market economy that we live in today, a complex system in which there are companies and the production of goods and services in bulk for commercialization and profit.