Understanding Traditional Economy

What is the primary basis for resource allocation in a traditional economy?

• Inheritance

• Market demand

• Government planning

• Technological advancement

Which of the following is a characteristic of a traditional economy?

• Use of prehistoric instruments

• High reliance on technology

• Flexible social structure

• Focus on profit

In a traditional economy, what is the primary purpose of producing goods and services?

• For personal use or community

• For international trade

• For maximizing profit

• For industrial growth

What is a key feature of trade in a traditional economy?

• Barter system

• Use of digital currency

• Stock market trading

• Credit-based transactions

What is a potential disadvantage of a traditional economy?

• Resistance to change

• Rapid technological adoption

• High economic growth

• Strong global integration