Traditional Economy

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• ??What you should know??
• What is economics?
• What four types of economics
• exist?
• 3. In a traditional economy why is
• their no need for money?

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What is Economics It is the production,
distribution, and consumption of goods and
services. From the Greek word (Oikonomia) --
Meaning, management of a household
administration.
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• Types of Economics systems
• 1. Traditional
• Free Market (USA)
• Capitalist
• 3. Command (Former USSR)
• Communist
• Mixed (What most have)
• Socialists

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Traditional Economy
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Traditional Economy

• Economic system in which most goods and services
  are provided by the individual for use in
  survival (subsistence)
• Based on the traditions and customs
  ex Farming, Hunting, Fishing, Gathering
• Little or no technology- neither the need or
  means of acquiring it.

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Cottage/Domestic Economy

• A part of the Traditional economy
• Goods produced at home
• Handmade/Craftsmanship
• Market
• Trade/Barter

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Three Basic Economic Questions

• Answered by traditions and customs
• Denies any new methods and/or technology in fear
  of failure- Subsistence Farming

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What to Produce

• Based on the needs of the Family
• Food, Clothing, etc.
• What can be traded at market?

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How to Produce

• Farming hunting are done the same way as the
  generation before
• My father, his father, his Grandfather, his Great
  Grandfather, etc., all did it this way

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Men and women are given different economic roles
and tasks
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For whom to produce it

• Family
• Use in the home
• People at the market

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Private Property

• Little to none.
• Except for land, home, and hand tools.

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Freedom of Enterprise

• No need for private business
• You can care for yourself. (Subsistence)

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Competition/Consumer Choice

• No competition, you produce what you need.
• Consumer Choice is limited to what you can make,
  grow, or trade.

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-- Cincinnati, Ohio
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Role of Government

• Little or no government involvement
• Possible government ownership of land (water)
• NO MONEY needed buying/trading goods at
  Market

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• ?? What you should know??
• 1. What is economics? It is the production and
• distribution and consumption of goods and
  services
• and their management
• 2.What four types of economics
• exists? Traditional, Command,
• Free Market, Mixed
• 3. In a traditional economy why is
• their no need for money?