Question

Which basic economic goals can be achieved easily in a traditional economy? Which cannot? Explain.

Answer 1

An economy known as "traditional" is a system in which traditions, beliefs, and customs are influencing factors in the shaping of goods and services, as well as the way in which these are distributed. Countries which typically adopt this type of system are the ones in which agriculture is the leading or one of the leading industries. Bartering, in other words, the trading of goods and services instead of paying for them with a currency, is predominant in this type of economy. People who participate in this structure do not normally end up with notorius gains as a result of their activities. If there is an excess of the production of a certain good, these would typically be handed to the ruling authority so they can handle in the way they think is most appropiate for society. The basic goals that can be achieved under this system are the ones related to nutrition and access to food. This is a natural consequence of an economy based in agriculture. However, this system does not guarantee by any mean an adecuate access to health services. Therefore, people tend to be exposed to illnesses that could otherwise be easily treated if an adecuate struture of health centers where available. This can also be said about education. Traditional economies tend to lack quality educational services. As a result, labor is normally inefficient. Hindering people from trying to develop more advanced industries which would end up generating more wealth and development. In order for societies living under a traditional economy to evolve, it is crucial for them to address the issue of education.

Answer 2

According  to Chapter 2: Economic Systems,

Needs are met and wants cannot be met.