Traditional Economy Flashcards

Questions and Answers

What is a Traditional Economy?

An economic system that focuses on advanced goods production

An economic system that encourages individual initiative

An economic system based on technology

An economic system where past customs determine how questions are answered (correct)

Which of the following is an example of a Traditional Economy?

Native American tribes

Feudal society

Caste system

All of the above (correct)

Where are Traditional Economies typically found?

In rural or poor agricultural nations due to lack of technology.

What influences the decision on what to produce in a Traditional Economy?

Basic needs of people, family, upper class, and customs. Signup and view all the answers

How is production carried out in a Traditional Economy?

Methods used to produce goods remain the same through generations. Signup and view all the answers

Who typically receives goods in a Traditional Economy?

It depends on society rank, elders' decision, producers or tradition. Signup and view all the answers

How much is produced in a Traditional Economy?

Just enough to survive, known as subsistence. Signup and view all the answers

What are some advantages of a Traditional Economy?

Less conflict and more cooperation due to dependency. Signup and view all the answers

What are some disadvantages of a Traditional Economy?

Restricts individual initiative and limits production possibilities. Signup and view all the answers

What are the characteristics of a Traditional Economy?

Simple, lack of technology, agrarian, family-centric, few economic choices, and reluctant to change. Signup and view all the answers

Study Notes

Traditional Economy Overview

Economic system defined by reliance on historical customs to address fundamental economic questions.
Decisions regarding production, distribution, and consumption are guided by traditions and societal norms.

Examples of Traditional Economies

Found in various cultural contexts: Native American tribes, feudal societies, caste systems, and among the Amish.

Geographic Distribution

Mainly located in rural or impoverished agricultural nations, where technology and modern infrastructure are limited.

Production Decisions

What to produce is influenced by the basic needs of individuals, families, social classes, and established customs.
The community's needs often dictate the types of goods produced.

Production Methods

Production techniques are typically passed down through generations, ensuring continuity but reducing innovation.

Distribution of Goods

Allocation of goods is determined by societal rank, decisions made by elders, producers’ discretion, and traditional practices.
Lower social classes often receive minimal resources compared to higher classes.

Production Quantity

Economies typically produce just enough to meet survival needs, following a subsistence model.

Advantages of Traditional Economies

Reduced conflict due to limited resources leads to increased cooperation and reliance among community members.

Disadvantages of Traditional Economies

Individual initiative is often restricted, limiting potential production of advanced goods and slowing technological advancement and economic growth.

Key Characteristics

Economies are simple, primarily agrarian, family-oriented, and exhibit a reluctance to change or adopt new practices.
Limited economic choices result from adherence to traditional values and customs.

Description

Dive into the fundamental concepts of traditional economies with these flashcards. Explore key terms, examples, and the contexts in which traditional economies thrive. Perfect for students looking to understand basic economic systems and their characteristics.