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What is the difference between
a traditional economy and
a market economy?

1 Answer

4 votes

Answer:

Step-by-step explanation:

A traditional economy is one which doesn't operate under a profit motive.

Instead, it emphasizes the trading and bartering of products and services that enable participants to subsist in a specific region, community and/or culture. Largely, traditional economies are a way of life in underdeveloped countries that rely more on old-fashioned economic models like farming or hunting than on newer-age modes like industry and technology.

Capitalist

Historically, these societies leverage market forces, such as supply and demand, with a strong motivation to earn a profit, to shape their economic models.

User Mahade Walid
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