Question

Which of the following societies are examples of traditional economies?a. US, Japan, Germanb. The Mbuti, Aborigines, Inuitsc. North Korea, Cubad. South Africa, Egypt, the Congo

Answer 1

Answer:

b. The Mbuti, Aborigines, Inuits

Explanation:

A traditional economy is an economic model of little complexity, characterized basically by subsistence production. In this model, there are no firms, people produce little and exchange their surplus for the sole purpose of meeting their basic basic needs. There was no profit. The traditional economy can be considered the first known economic system, but to this day it can be observed in underdeveloped rural communities. The traditional economy was the initial model that gave support to the development of more complex models, such as the market economy that we live in today, a complex system in which there are companies and the production of goods and services in bulk for commercialization and profit.