WG18C DOL

On what do traditional economies base their economic decisions?

• Market trends

• Cultural values and beliefs

• Technological advancements

• International trade agreements

Which of the following is NOT a characteristic of a traditional economy?

• Relies on barter instead of money

• Depends on agriculture, fishing, hunting, gathering

• Governed by the laws of supply and demand

• Often found in emerging markets and developing countries

What do traditional economies center around?

• Cities

• Families or tribes

• Corporations

• Global markets

In a traditional economy, what type of society is most common?

• Agricultural

• Industrial

• Hunter-gatherer and nomadic

• Urban

What is a characteristic of trade in traditional economies?

• It relies heavily on currency.

• It relies heavily on barter.

• It is mostly done online.

• It is regulated by international laws.

What do traditional economies produce?

• Only what they need

• A wide variety of goods for export

• High-tech products

• Mass-produced items

What is likely to happen when traditional economies start farming and settle down?

• They become less efficient.

• They start to evolve and may create some form of money.

• They immediately adopt market economies.

• They reduce their surplus production.

What is an advantage of a traditional economy?

• They are not affected by changes in nature and weather patterns.

• They are more sustainable than a technology-based economy.

• They are not exposed to market or command economies.

• They have high friction between members.

What is a disadvantage of a traditional economy?

• They have little or no friction between members.

• They are vulnerable to market or command economies that use up their natural resources.

• Everyone understands their role and contribution.

• They are based on technology.

What dictates the distribution of resources in traditional economies?

• Market demand and supply

• Custom and tradition

• Government policies

• Technological advancements