Traditional+Economy

= **TRADITIONAL** =

=How does a traditional economy answer the 3 economic questions?= 1.) Natural material for food, clothing, and shelter. 2.) Manual labor and from the nature. 3.) Basic everyday needs and doesn’t satisfy the wants as much as it satisfies the needs =Characteristics:= Used for mainly rural areas. Used in less developed countries. They do everything manually, no machines. Never changing, there are no improvements.

=Pros/Cons:= Use their own recources that are available to them. There is a lower standard living compared to market economy. Healthier for the enviroment because they don't use the machines. There is mroe manual labor that is being done. Lack of modernization. =Examples:= Tribes in Africa that live off the land. Areas in South America and Mexico that people also live off the land.