In economic taxonomy, traditional economies resolve basic economic problems through non-market mechanisms. Match each operational aspect of a traditional economic system in Column A with its corresponding defining feature in Column B.
- Resource Allocation BasisAncestral customs and age-grade traditions dictating what, how, and for whom to produce
- Primary Production GoalSubsistence output aimed strictly at immediate household consumption rather than profit maximization
- Mode of TransactionDirect exchange of commodities without reliance on a standardized monetary medium of exchange
- Asset Tenure SystemCustodianship of productive land vested in the lineage, clan, or tribal chief under customary law
Answer
The operational aspects of a traditional economy match their defining features as follows: Resource Allocation Basis matches ancestral customs and age-grade traditions; Primary Production Goal matches subsistence output aimed at immediate consumption; Mode of Transaction matches direct exchange of commodities without currency (barter); Asset Tenure System matches custodianship of productive land vested in the lineage or tribal chief.
Each feature accurately reflects the socio-economic realities of traditional systems: resource allocation is dictated by ancestral customs, production targets subsistence survival, commerce relies on trade by barter, and land control is vested in traditional custodians under customary law.
Step-by-Step Solution
Key Concept
Key features and structural organization of a Traditional Economic System
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