Enhance Your Learning with Economics - Traditional Economy Flash Cards for quick learning
An economic system where economic decisions are based on customs, traditions, and cultural beliefs rather than market forces or government intervention.
1. Subsistence agriculture 2. Barter system 3. Strong social and cultural ties 4. Limited technological advancements 5. Self-sufficiency 6. Inherited occupations and roles
1. Stability and predictability 2. Preservation of cultural heritage 3. Strong community bonds 4. Sustainable use of resources 5. Less income inequality
1. Limited economic growth 2. Lack of innovation and progress 3. Inefficient resource allocation 4. Vulnerability to external shocks 5. Gender and social inequality
1. Amish communities in the United States 2. Indigenous tribes in the Amazon rainforest 3. Inuit communities in the Arctic 4. Maasai tribes in East Africa 5. Aboriginal communities in Australia
Tradition plays a central role in shaping economic activities, determining occupations, resource allocation, and social hierarchies. It provides stability and continuity to the economic system.
Traditional Economy: Based on customs and traditions, limited market exchange, and little government intervention. Market Economy: Based on supply and demand, market exchange, and minimal government intervention.
Traditional Economy: Decisions made by customs and traditions, limited government intervention. Command Economy: Decisions made by central planning authorities, extensive government control.
Traditional Economy: Based on customs and traditions, limited market exchange, and little government intervention. Mixed Economy: Combination of market forces and government intervention, private and public ownership.
Traditional economies are often sustainable due to their focus on subsistence agriculture, limited resource use, and strong community ties. However, external factors like climate change can pose challenges.
Globalization has led to the erosion of traditional economies as they face competition from market economies. It has also brought changes in consumption patterns, cultural practices, and resource availability.
The future of traditional economies is uncertain. While some communities strive to preserve their traditional way of life, others are adapting to modern economic systems to meet changing needs and challenges.