traditional economic system
A traditional economic system is based on customs, history and time-honored beliefs.
Which type of economy bases its decisions on traditions customs?
Ec 2 Economic Systems Vocabulary
| A | B |
|---|---|
| traditional economic system | economic decisions are based on customs, beliefs, and ways of doing things that have been handed down from generation to generation |
| command economic system | the government controls the factors of production and makes all the decisions about their use |
Which is the most important aspect of an economy?
In this economy, economic .decisions regarding production are taken by private entrepreneurs who are solely guided by the expected rate of profit based on consumer’s preferences, actual or anticipated. Thus profit motive is the mainspring of all economic activity.
Which is an example of a type of economy?
Such an economy prevails in the U.S.A., the U.K., Western Europe .and most other countries of the world. In this economy, economic .decisions regarding production are taken by private entrepreneurs who are solely guided by the expected rate of profit based on consumer’s preferences, actual or anticipated.
What are the characteristics of an under developed economy?
The main characteristics of under-developed economies are:, excessive reliance on agriculture, a rapidly increasing population, capital deficiency, under-utilisation of human and natural resources, low per capita income, low standard of living, uneconomic social structure, under-developed infrastructure, and so on.
How is an industrial economy different from an agricultural economy?
The economy largely produces agricultural products, raw materials and food-grains. They export these commodities and import manufactured goods. Such economies are generally backward and poor. On the other hand, industrial economies are rich and advanced. The towns and cities represent industrial economy.
