Traditional Economy

Traditional Economies, also known as Subsistence Economies are the earliest and original economic system. Production is determined by local traditions, customs, and beliefs. Areas that use traditional economies tend to be rural and agricultural and historically engaged in local bartering and trading.

1,676 Questions
Traditional Economy

How Mayan barter systems worked?

By bridges canals boats

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Traditional Economy

How does money change the barter system?

If by the barter system, you mean the system of trading goods and services that existed prior to the introduction of money, the barter system is almost completely replaced when money is introduced. An easier flow of goods and Specialization are the immediate changes to the economy that come with the introduction of money.

Money tends to be very durable, very portable, and easily divisible.

Most goods are not all three, and often have only one of these characteristics.

Divisibility of Milk vs Portability of Plow

Money reduces barriers to trade. For example, if a blacksmith has a hankering for a gallon of milk, and the farmer wants a new plow, there is a mismatch of value, the blacksmith only wants a gallon of milk, the plow will take a lot of time to make, require a lot of metal and fuel for the forge -- not to mention the wear and tear on his equipment, he'd need 100 gallons for that trade, but he only wants one. This mismatch in value is common in the barter system, and slow down the marketplace.

Durability of Money to Save vs Milk Grain and Nails

Money also makes it easier for savers to pool their investments in new business types which previously couldn't work in the barter model. Imagine several farmers and the blacksmith save cash up over ten years, and buy a bunch of specialized wagons that can carry a lot of goods from farm or factory to market, they then get the return on this investment as they further specialize the economy creating the job of teamster (later unionized :) ) these owners pay the teamster to maintain the wagons and horses and carry goods back and forth, this gives the farmer and the merchant more time to do what they have specialized in.

Benefits of specialization

So money pushes participants in the economy to specialize, merchants who buy raw food goods from different suppliers sell them at market for money, farmers, and milkers get cash for raw goods and a new occupation is born, the goods merchant. Now people have a place to come for goods, a store, which seeks ever new products to sell. As the farmer has more time (he now sells his milk product all at once when he arrives at the market) he has more time to work his farm, he discovers new ways to yield more goods with the same property, maybe he starts to raise fish in his pond, or he starts writing books.

Money is often easier to steal than goods, and services. This creates new category of occupation, highwayman and banker. People don't want to have their savings vulnerable to theft, so they need a safe place to store it, a vault in a bank is perfect. But this means people who are moving money around need to have carts to deliver the money to the bank, this creates the job of highwayman, and pirate, which creates the need for private security contractors and royal navies. and so on. Once you have bankers you can finance ever more complicated industries that could never be built out of the wealth of one person, although they may start smaller that way-- think airlines, aircraft manufacturers, and automobile makers -- without access to credit from banks they could not afford the capital outlays required to build modern aircraft and cars.

Money makes the world go round, the world go round, the world go round!

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Traditional Economy

What replaced bartering in the Middle Ages?

There was a period in the Early Middle Ages when very few coins were produced, and the presumption is that during this period economies of Europe were dominated by barter, though there is no record of this. We know that a stable currency was introduced by Charlemagne with the Frankish denier, which was intended to reestablish the Roman denarius as a monetary basis. The denier was adopted by a large number of other countries, including the Ango-Saxon kingdoms, where the new penny was of very similar value.

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Business & Finance
Traditional Economy

When you barter what must you do in order to buy something?

Trade it for something else.

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Traditional Economy

What are the good things about traditional economy?

obviously because traditional economy shares all there goods and services which is fair and it causes no pollution

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The Difference Between
Traditional Economy

What is the difference between trade and barter?

Trading is different from bartering when it involves money, trading does not include money while bartering does. The reason is that trading with money would be buying while bartering would be adding both goods/services and money to buy something.

For instance: You have $50 and some lightly used engine parts you would like to trade for a new $90 bicycle. That would be bartering.

But if you paid $90 for it that would be a purchase.

While if you gave them $90 worth of parts it would be trade.

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Sentence and Word Structure
Example Sentences
Traditional Economy

How do you write a sentence using barter?

In some old cultures they would barter things such as salt for gold.

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Traditional Economy

What is a barter system?

barter is where people exchanged goods for other goods like trading a loaf of bread for some jam.Alot of people on the map use the barter systems and aboriginals used that barter system but could only trade with themselves

Additional comment:

Barter is trading for goods without a fixed price tag. Some places barter with currencies, and some use only goods to trade with. The old trading posts were often barter only, with little currency.

Alternate Answer:

Barter System is that system in which goods are exchanged for goods. In ancient times when money was not invented trade as a whole was on barter system. This was possible only in a simple economy but after the development of economy, direct exchange of goods without the use of money, was not without defects.

Fact:

The Aztecs used the barter system to trade with neighboring cities. Through bartering the Aztecs adopted gods and traditions from the cities.

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Deeds and Ownership
Boats and Watercraft
Recreational Vehicles (RVs)
Traditional Economy

Can you legally barter land say for a boat or motor home?

Certainly. You will still have to by title fees and transfer taxes and the like, but there is nothing that says you can't sell a piece of property for a car or boat or even a piece of chocolate.

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Synonyms and Antonyms
Traditional Economy

What is a synonym for barter?

Trade.

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Iran
Traditional Economy

Does Iran have mixed economy or traditional economy?

Mixed there are two sides to Iraq traditional and modern.

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Sentence and Word Structure
Example Sentences
Traditional Economy

How can you use the word barter in a sentence?

i am going to go barter with that salesman over there, for his fantastic artistry.

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Definitions
Traditional Economy

What does barter mean?

Barter Means To Trade Something For Something Else. For Instance, If I Traded Brittany My Pencil For Her Marker. That's An Example Of Bartering.
To trade services or objects for other serviced or objects, instead of using money. Kind of like saying I'll paint your house in trade for your old car.

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Traditional Economy

What is the difference between barter system and double coincidence of wants?

The double coincidence of wants is one of the major part of the Barter System.The two basic terms actually don't have any specific difference.

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Traditional Economy

What are the Major features of a traditional economy?

The traditional economy is usually built around subsistence agriculture. Additionally, each person has something to do- no unemployment. Lastly, there is self-sufficiency in that what you make you consume, meaning less demand on some goods.

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Traditional Economy

How is the value of a barter transaction determined?

it is determined by your teacher in economics subject.

Go ask your teacher and have a failure mark in your gradecard.

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Sentence and Word Structure
Example Sentences
Traditional Economy

How do you use silent barter in a sentence?

Our class reenacted a silent barter scene.

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Traditional Economy

What is bartering?

Barter- the exchange of one good or service for another

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Traditional Economy

What economic system replaced the barter system in the Middle ages?

Money Economy

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This question assumes a state of affairs that might not have existed - that the economy at some point of the Middle Ages was based on barter. We really do not have evidence that this is the case. What we do have evidence of is a diminished quantity of coinage, and a lack of standardization of coinage, both of which happened at other times, including in the ancient Roman Empire.

There is a link below to a list of Frankish kings. There are pictures in the list of several coins, the earliest of which was made only a few decades after the fall of the West Roman Empire in 476, its style is clearly that of a Roman Emperor of the 5th century. The article shows nine or ten other coins of Frankish kings of the 6th and 7th centuries.

Other Germanic groups also used coinage extensively, as can be seen with the links to images of coins of Visigoth, Lombard, Ostrogoth and Vandal kings of the 5th, 6th, and 7th centuries.

In the 8th century, Charlemagne standardized the currency of much of Western Europe. The coin he introduced was the denier, a copy of the Roman denarius. It was ancestral to the French denier, British penny, German pfennig, Portuguese dinheiro, and others.

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Traditional Economy

Why was the barter system replaced by the use of money?

It

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Traditional Economy

What are the weaknesses of barter system?

The biggest weakness of a barter system is there must be an exchange rate for each and every good traded. e.g.: in an economy with only three goods, ducks, chickens and potatoes, you must readily know all of the following rates to conduct business. 1 duck=2 chickens, 1 chicken=3 potatoes, 1 duck=6 potatoes, 1 potato=1/3 chicken or 1/6 duck.... etc. If more good are added the list goes on and on.

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History, Politics & Society
Traditional Economy

What is a characteristic of barter?

swap or trade

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Traditional Economy

What are difficulties of barter system?

These are the main difficulties of barter system:

  • Problems of proper measurement
  • Identify to those people who need the same goods that we want to sale
  • More time consuming
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Traditional Economy

What specific countries have a traditional economy?

Chad

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