What Is The Role Of The Government In A Traditional Economy?

What role does the government play in a command economy?

A command economy is a system where the government, rather than the free market, determines what goods should be produced, how much should be produced, and the price at which the goods are offered for sale.

The command economy is a key feature of any communist society..

Which Cannot be done by the government in a command economy?

Answer: In a command economy, the government can not establish means that will influence competition between companies.

What role does the government play in a command economy quizlet?

In a command economy an authority such as the government, governmental agency, or central planners decide what to produce, how to produce and to whom goods and services will be allocated.

What are the pros and cons of traditional economy?

8 Remarkable Pros and Cons of a Traditional EconomyIt is based on agriculture, hunting, gathering, fishing or a combination of the aforementioned techniques. … The distribution of resources is well known. … It is more sustainable. … It fosters togetherness and cooperation. … It is dependent on Mother Nature. … It can be detrimental for the environment. … It is not subject to change.More items…•

Who controls the traditional economy?

The primary group for whom goods and services are produced in a traditional economy is the tribe or family group. In a command economy, the central government decides what goods and services will be produced, what wages will be paid to workers, what jobs the workers do, as well as the prices of goods.

How does traditional economy answer the 3 economic questions?

economies answer the economic questions of (1) what to produce, (2) how to produce, and (3) for whom to produce. What is produced? based on custom and the habit of how such decisions were made in the past. Many traditional economies are found in rural areas where people depend on members of their extended families.

What are the advantages of a traditional economy?

Advantages of a Traditional Economy Traditional economies produce no industrial pollution, and keep their living environment clean. Traditional economies only produce and take what they need, so there is no waste or inefficiencies involved in producing the goods required to survive as a community.

Who makes the economic decisions in a traditional economy?

Comparing Economies: Traditional, Command, Market, and Mixed. In an traditional economy individuals and tribes make the decisions. Often these decisions are based on customs, traditions, and religious beliefs.

What are the five characteristics of a traditional economy?

Characteristics of a Traditional EconomyTraditional economies are often based on one or a few of agriculture, hunting, fishing, and gathering.Barter and trade is often used in place of money.There is rarely a surplus produced. … Often, people in a traditional economy live in families or tribes.More items…•

What is an disadvantage of a traditional economy?

What are the disadvantages of a Traditional Economy? A Change of economy is discouraged and perhaps punished, and one in which the methods of production are inefficient.

What are the features of a traditional economy?

A traditional economy is a system that relies on customs, history, and time-honored beliefs. Tradition guides economic decisions such as production and distribution. Societies with traditional economies depend on agriculture, fishing, hunting, gathering, or some combination of them. They use barter instead of money.