Traditional and Command Economic Systems

A Traditional Economy is characterized by which of the following?

• Reliance on customs and traditions

• Centralized decision-making

• High level of industrialization

• Use of advanced technology

A Command Economy is:

• An economic system where the factors of production are regulated by the government rather than consumers and producers

• An economic system where price is determined by business owners

• An economic system with no government intervention.

• An economic system based on barter trade.

What is one of the 4 types of economies shown in the image?

• Traditional

• Digital

• Industrial

• Agricultural

In which type of economy does the government have significant control over resources?

• Market

• Traditional

• Command

• Mixed

What are decisions in a Traditional Economic System based on?

• Technology and innovation

• Customs and beliefs

• Market demand

• Government policies

In a Traditional Economic System, the goals of the society are ________ and what’s best for the group.

• survival

• wealth accumulation

• technological advancement

• individual success

What is one advantage of a traditional economy?

• Rapid technological advancement

• Little disagreement over economic goals

• High level of innovation

• Flexible production methods

In a traditional economy, methods of production are the same as they have always been. (True/False)

• True

• False

In a traditional economy, distribution is based on ______.

• customs/traditions

• government policies

• market demand

• technological advancements

What is one disadvantage of a traditional economic system?

• Encourages innovation

• Resist change

• High productivity

• Flexible roles