how does a traditional economy answer the basic questions of what, how, and for whom to produce?
how does a traditional economy answer the basic questions of what, how, and for whom to produce?
Answer: A traditional economy answers the basic questions of what, how, and for whom to produce based on long-standing customs, traditions, and cultural practices that have been passed down through generations. These economies are often found in rural or indigenous societies where the community’s way of life is closely tied to their historical practices and beliefs.
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What to Produce: In a traditional economy, what to produce is determined by the community’s traditional needs, preferences, and historical activities. The focus is on producing goods and services that have been essential to their way of life for generations. For example, a community may prioritize producing staple foods, clothing, and tools that have sustained them over time.
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How to Produce: The methods of production in a traditional economy are guided by traditional knowledge and skills. These methods have been developed and refined over time and are often passed down from one generation to the next. Traditional techniques for farming, hunting, fishing, and crafting are used to ensure continuity with cultural practices.
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For Whom to Produce: In a traditional economy, the distribution of goods and services is often based on the community’s social and cultural norms. These norms determine who receives what is produced. For instance, goods might be shared among extended family members or distributed based on age, status, or other traditional criteria.
It’s important to note that traditional economies are relatively self-sufficient and may have limited interaction with external markets. While they can provide a sense of cultural identity and continuity, they might also face challenges when exposed to modern economic forces and changes in the larger global economy.