Traditional Economy
What is the primary method of production in a traditional economy?
Agriculture, hunting, fishing, and gathering,
In a command economy, who controls the resources?
In a command economy, the government controls all resources, meaning they decide how resources are allocated and used throughout the economy; essentially, the government owns and manages all means of production in a command system.
What drives the production of goods in a market economy?
In a market economy, the production of goods is primarily driven by the forces of supply and demand; meaning businesses produce goods based on what consumers want to buy and at a price that aligns with the market's willingness to pay, with no central authority dictating production levels.
What is a mixed economy?
A mixed economy is an economic system that combines elements of both a free market (capitalist) economy and a centrally planned (socialist) economy.
What country borders Tunisia?
Algeria; Libya
Name one advantage of a traditional economy
One advantage of a traditional economy is that you are not unclear about your future and you may experience less stress (you know your future job)
Spend time with family
What is one major disadvantage of a command economy?
A major disadvantage of a command economy is the lack of flexibility to respond to consumer needs and preferences, often leading to shortages or surpluses of goods due to the government's centralized control of production, without the guiding forces of supply and demand in a free market.
Name one benefit of a market economy.
A key benefit of a market economy is increased efficiency in production due to competition between businesses; this means that goods and services are generally produced at the lowest possible cost, maximizing the value for consumers.
Name a key feature that distinguishes a mixed economy from a market economy.
A key feature that distinguishes a mixed economy from a market economy is the presence of significant government intervention in the market, where the government actively participates in resource allocation by owning certain businesses and providing public services, unlike in a pure market economy where the market is primarily driven by private enterprise with minimal government involvement.
What is the major agricultural export from Tunisia?
Olive oil
Name a country that has operated under a command economy.
North Korea
Other countries with similar economies include Cuba and the former Soviet Union.
How do prices get determined in a market economy?
In a market economy, prices are determined by the interaction of supply and demand
How does the government intervene in a mixed economy?
In a mixed economy, the government intervenes through various mechanisms like regulations, subsidies, taxes, public spending on essential services, trade policies (tariffs and quotas), and monetary policy to influence market activity, promote social welfare, and address market failures, while still allowing for private ownership and free market competition to a significant extent; essentially balancing market forces with government intervention to achieve desired economic outcomes.
Name a traditional job in Nigeria.
Weaving, leatherwork, pottery, ___________
Give an example of a society that primarily operates under a traditional economy.
The Amish communities follow traditional economic practices, focusing on agriculture and craftsmanship, which are integral to the Amish way of life.
How do government regulations affect businesses in a command economy?
In a command economy, the government controls all aspects of business, including production, prices, and competition. Their regulations can affect Monopolies, Shortages and surpluses, Lack of competition, Lack of flexibility and innovation
What role do consumers play in a market economy?
In a market economy, consumers play a crucial role by driving production decisions through their purchasing choices, essentially dictating which goods and services are produced by signaling their demand through what they buy, thus influencing market prices and guiding businesses on what to produce and how much to supply; this is often referred to as "consumer sovereignty
Provide an example of a country with a mixed economy.
The United states, Canada, United Kingdom, France, Germany, Japan, Australia, Mexico, and Sweden.
What is the largest city in Nigeria?
Lagos
What are the limitations of a traditional economy in modern society?
A traditional economy is limited in modern society due to its lack of adaptability to change, limited economic growth potential, reliance on subsistence living, vulnerability to natural disasters, lack of technological innovation, and restricted access to a diverse range of goods and services, often resulting in lower living standards compared to more developed economies.
Discuss how innovation might be stifled in a command economy.
Lack of Competition Inhibits Innovation, Critics argue that the inherent lack of competition in command economies hinders innovation and keeps prices from resting at an optimal level for consumers.
Discuss how competition in a market economy affects product quality.
Innovation also leads to a greater variety of goods and services, which provides a broader selection for consumers. It also usually leads to better quality products at lower prices for consumers. Companies are forced to innovate in their processes and end products to stand out.
Discuss the balance of power between government and private enterprise in a mixed economy.
In a mixed economy, the balance of power between the government and private enterprise lies in a dynamic where private businesses have the freedom to operate and pursue profit within the market, while the government actively intervenes through regulation and policy to achieve social and economic goals.
What candy had the most growth in the US in recent years?
In 2024, NERDS was on the precipice of a monumental brand revival. Their latest hit, NERDS Gummy Clusters, had become a candy juggernaut, with sales skyrocketing from $50 million to a staggering half billion dollars in just five years.