Question

(05.02 MC)

Which of the following statements is true of a traditional economy? (5 po
O People produce a variety of goods for local, regional, and global trade.
O People produce and consume only the goods they need.
People produce goods according to the dictate of government.
O People produce goods in order to make a profit.

Answer 1

A traditional economy is characterized by people producing and consuming only the goods they need.

Step-by-step explanation:

A traditional economy is characterized by people producing and consuming only the goods they need. In this type of economy, there is little or no specialization, and individuals or families produce what they require for their own survival.

An example of a traditional economy is the subsistence farming practiced by some indigenous communities. These communities grow their own food, make their own clothes, and build their own shelters. They do not engage in trade for profit or produce goods for global markets.

Therefore, the correct statement is: People produce and consume only the goods they need.

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