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Discuss the traditional economy and state the advantages and disadvantages of the economic system

Discuss the traditional economy and state the advantages and disadvantages of the economic system

Answers

Felix
(a) TRADITIONAL ECONOMY
The traditional economy was fundamentally based on traditions and customs. Here, barter was the main stay of the economy and every economic player existed on a subsistence level. The fundamental economics question of what to produce. How to produce and for whom to produce were answered by customs and traditions. Economic resources were owned or controlled by a Sovereign or Fenda-lord.
The following are the advantages and disadvantages of traditional economy.
Advantages:
The traditional economy has its own advantages. Some of them are:
1. Every member of the society is a major playmaker. They participate fully in economic activities.
Every member knows what they are to do.
2. There exists a strong social network among every member of the society.
3. Positions and hierarchy are already established within the society.
4. Traditional and customs provide answer to basic economic questions of every society.
5. Life and business activities are stable, decent, predictable and continuous.
Disadvantages:
1. There is technological problem as it does not take technological change.
2. There is little or no promotion of scientific and intellectual development.
3. There is often inefficient and inadequate provision of goods and services.
4. Since the society is primitive, it is often very slow to change.
5. There is little or no room for skill development. There is also inefficient use of skill in relation to the factors of production.
Anganifelix answered the question on December 8, 2018 at 11:57

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