Traditional Economy

Luis Ramirez, Gaby Ford, Elijah Barney, Kortez Baccus

Characteristics of a Traditional Economic System

Use of scarce resources and other economic activity comes from rituals, habits and customs.

Advantages

Everyone knows which role to play. Little uncertainty exists over what to produce. If you are born into a family that farms, you farm. If you are born into a family that hunts, you hunt.

Disadvantages

It tends to discourage new ideas and ways of doing things. There is lack of progress due to the lack of new ideas and new ways of doing things. Traditional economies also have strict rules.

Is it a viable place to live?

This economic system is not viable for people to live in because it is based off of what was- not what is. It is not modernized so it could prevent people from getting the best out of their resources.
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