How are economic decisions made in a traditional economy quizlet?

How are economic decisions made in a traditional economy quizlet?

Which is more important in a traditional economy, accumulating individual wealth or honoring tradition? How are economic decisions made in a command economy? The government decides what goods and services will be produced, how they will be produced, and how they will be distributed. You just studied 7 terms!

How does a traditional economy decide?

Traditional economies rely on habit, custom, or ritual to decide what to produce, how to produce it, and to whom to distribute it. In a centrally planned economy the central government makes all decisions about the production and consumption of goods and services.

Where economic decisions are made according to customs?

A command economy is where a central government makes all economic decisions. Either the government or a collective owns the land and the means of production. It doesn’t rely on the laws of supply and demand that operate in a market economy. A command economy also ignores the customs that guide a traditional economy.

What is an economic system in which economic decisions are made according to social roles and culture?

In the economy of the Bushmen of the Kalahari Desert the people follow the examples of their ancestors. This is what kind of economy? Which of the following is an economic system in which economic decisions are made according to social roles & culture? A command economy is when the government is in control.

Who answers the economic questions in a traditional economy?

produced in a traditional economy is the tribe or family group. government planning groups make the basic economic decisions for the workers. what goods and services will be produced, what wages will be paid to workers, what jobs the workers do, as well as the prices of goods.

What are the characteristics of a traditional economy?

Either the government or a collective owns the land and the means of production. A mixed economy combines the characteristics of the other three. Traditional economies base economic decisions on cultural values and beliefs. This economy relies on farming, hunting, and fishing.

How does a traditional economy interact with a command economy?

When traditional economies interact with market or command economies, things change. Cash takes on a more important role. It enables those in the traditional economy to buy better equipment. That makes their farming, hunting, or fishing more profitable. When that happens, they become a traditional mixed economy.

Are there any traditional economies left in the world?

There are not very many traditional economies left in the world, and those that exist are very small in scale, usually having made a deliberate choice to live as they do. Historically, traditional economies were hunter-gatherer societies.

When does a traditional economy start to evolve?

Fifth, traditional economies start to evolve once they start farming and settle down. 4 They are more likely to have a surplus, such as a bumper crop, that they use for trade. When that happens, the groups create some form of money. That facilitates trading over long distances.