How does a traditional economy differ from a capitalist economy?

A) In a traditional system, economic decisions are based on custom.

B) In a capitalist system, the government answers the three basic questions.

C) In a capitalist system, a central authority owns the factors of production.

D) In a traditional system, a great variety of goods and services are available.

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Haylie Schultz

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24 May, 04:11

How does a traditional economy differ from a capitalist economy?

A) In a traditional system, economic decisions are based on custom.

B) In a capitalist system, the government answers the three basic questions.

C) In a capitalist system, a central authority owns the factors of production.

D) In a traditional system, a great variety of goods and services are available.

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Answers (1)

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Jairo Solis · Answer 1

The answer of the given question is letter A. In a traditional system, economic decisions are based on custom.

A traditional economy is an original economic system in which traditions, customs, and beliefs shape the goods and the services the economy produces while capitalism or capitalist economy is based on private ownership of the means of production.