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What are the characteristics of a Traditional economy?

What are the characteristics of a Command economy?

What are the characteristics of a Free Market economy?

What are the benefits of economic freedom?

What are the benefits of competition?

What role does the government play in the US economy?

User Pus
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2 Answers

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21 votes

Final answer:

A traditional economy is based on customs and rituals, a command economy is centrally planned with limited individual freedom, and a free market economy is driven by supply and demand with limited government intervention. Economic freedom leads to opportunities and higher living standards, while competition results in lower prices and better products. The US government plays a role in providing public goods, regulating markets, addressing market failures, and promoting economic stability.

Step-by-step explanation:

Characteristics of a Traditional economy:


  • Based on customs, traditions, and rituals

  • Primary economic activities such as hunting, farming, and gathering

  • Little use of technology or modern methods of production

  • Barter system for trade

Characteristics of a Command economy:


  • Centralized government control over allocation of resources

  • Decisions made by central planning authority

  • State ownership of key industries and resources

  • Limited individual economic freedom

Characteristics of a Free Market economy:


  • Private ownership of resources and means of production

  • Individuals and businesses make economic decisions based on supply and demand

  • Competition drives efficiency and innovation

  • Limited government intervention

Benefits of economic freedom:


  • Allows individuals to pursue economic opportunities

  • Encourages innovation and entrepreneurship

  • Leads to higher living standards and economic growth

Benefits of competition:


  • Leads to lower prices and better quality products

  • Encourages businesses to be efficient and innovative

  • Provides consumers with more choices

Role of the government in the US economy:


  • Providing public goods and services

  • Regulating and overseeing markets

  • Addressing market failures and externalities

  • Promoting economic stability and growth through fiscal and monetary policies

User Imacbest
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28 votes
28 votes

Answer:

characteristics of a Traditional economy:

A traditional economy is a system that relies on customs, history, and time-honored beliefs. Tradition guides economic decisions such as production and distribution. Traditional economies depend on agriculture, fishing, hunting, gathering, or some combination of the above. They use barter instead of money.

characteristics of a Command economy:

The government creates a central economic plan for all sectors and regions of the country. The government allocates all resources according to the central plan. The central plan sets the priorities for the production of all goods and services.

characteristics of a Free Market economy:

Private property, Freedom of choice, Motivation of self intrest, competition, limited government.

benefits of economic freedom:

It is the principles of economic freedom—free markets, rule of law, protection of private property, and open trade—that boost prosperity and reduce costs so that societies can protect their environments, improve health, and broaden access to education

benefits of competition:

Competition in America is about price, selection, and service. it benefits consumers by keeping prices low and the quality and choice of goods and services high. Competition makes our economy work.

role the government play in the US economy:

The U.S. government's role in the economy can be broken down into two basic sets of functions: it attempts to promote economic stability and growth, and it attempts to regulate and control the economy.

Step-by-step explanation:

User Steven Marks
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