Question

Clay County Virtual School

Question 7(Multiple Choice Worth 4 points)
(03.02 MC)
Which of the following statements is true of a traditional economy?
O People produce a variety of goods for local, regional, and global trade.
O People produce and consume only the goods they need.
O People produce goods according to the dictate of government.
O People produce goods to make a profit.

Answer 1

In a traditional economy, people produce and consume only the goods they need.

Step-by-step explanation:

The correct statement that describes a traditional economy is that people produce and consume only the goods they need. In a traditional economy, individuals rely on their own resources and skills to meet their basic needs. They produce goods and services for their own consumption and do not engage in widespread trade or profit-seeking activities. This type of economy often exists in rural or indigenous communities where there is a strong focus on self-sufficiency and maintaining traditional ways of life.

Learn more about Traditional economy