What are some advantages and disadvantages of a traditional economy?


Quick Answer

Advantages of a traditional economy include knowing people's role in the economy and producing goods to help people survive; disadvantages include a lower standard of living and an increased vulnerability of all concerned. A traditional economy is one that emphasizes the beliefs and customs of each generation of people.

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Full Answer

Generally, a traditional economy is very stable and constant. In today's society, a traditional economy is still used in developing countries such as Asia, Africa, the Middle East and South America. People living in these areas don't decide how they will make or spend their money. Their jobs are handed down from parents and grandparents and people only purchase what they need to survive.

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