Question

What is one disadvantage of a traditional economy?

A. The system is unstable with periods of prosperity alternating with periods of
recession.
OB. The standard of living of most people is very low, and most people barely meet their
basic needs.
OC. The market distributes incomes unequally according to how society values what
people do.
OD. Workers have little incentive to work hard, and economic performance suffers.

Answer 1

One disadvantage of a traditional economy is the unequal distribution of incomes based on societal values, resulting in economic inequality and lower standard of living for most people.

Step-by-step explanation:

One disadvantage of a traditional economy is that the market distributes incomes unequally according to how society values what people do. In such an economic system, the distribution of wealth and resources may be uneven, resulting in economic inequality. This means that some individuals or groups may have significantly more wealth or resources than others.

For example, in a traditional agricultural economy where farming is highly valued, farmers may have higher incomes and better access to resources compared to those engaged in less valued occupations like artisans or craftspeople. This leads to disparities in the standard of living and uneven access to basic needs.

Overall, the unequal distribution of incomes in a traditional economy can result in a lower standard of living for most people and hinder economic growth and development.

Learn more about traditional economy