How does a market economy answer the 3 economic questions?
*Use natural resources available to them
*Homemade tools
*Satisfy everyday needs
*Food, shelter, clothing
Characteristics: Generational workers
*Technology is not used
*They use old methods as generations before them so hunting farming and gathering would be done the same as generations before them
Pros/Cons:
Pro: You dont have to worry about a trade deficit, it is very simple, They don't over use natural resources
Con: There is no real economic growth, Women and men have different tasks and jobs, they consume what they produce
Examples:
*Cottage industry
*Note there is no purely traditonal economy in the world today but there are some regions in the world that use the thought of traditional economy
TRADITIONAL ECONOMY
How does a market economy answer the 3 economic questions?
*Use natural resources available to them*Homemade tools
*Satisfy everyday needs
*Food, shelter, clothing
Characteristics: Generational workers
*Technology is not used*They use old methods as generations before them so hunting farming and gathering would be done the same as generations before them
Pros/Cons:
Pro: You dont have to worry about a trade deficit, it is very simple, They don't over use natural resourcesCon: There is no real economic growth, Women and men have different tasks and jobs, they consume what they produce
Examples:
*Cottage industry*Note there is no purely traditonal economy in the world today but there are some regions in the world that use the thought of traditional economy