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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.
413 Questions
What economic system is bartering in?
an economic system based on exchanging goods rather than paying for them- apex :)
What is the bartering with Native Americans?
- The native barter system is the barter system of the natives. I know this, because I am a native, and I barter pigs. I enjoy bartering and wish to do so until the day of my death, which is scheduled for Deccember 6th, 2024.
When did the Phoenicians barter?
Before the introduced currency, all trades, from buying bread in the market to buying tin in Britain was by barter or with bars of precious metals.
After they introduced coinage, this could pay for goods and services at home or in the trading colonies they established around the Mediterranean and Black Seas.
What was needed for successful bartering settlement?
Direct exchange requires that you have something that somebody else wants, and that THAT PERSON have something else that YOU want - and that you both agree that what you have is worth what he has.
A bartering system requires that you have something that somebody else wants, and that somebody else has something that YOU want - and that you can trade one thing for another, even if you need to get three or more people who all swap things. It works pretty well in a small farming community, for example; you have grain from your crops, and you trade your grain for eggs from your neighbor's chickens. Then you can bake a cake and give it to the blacksmith, in exchange for shoeing your horse.
Outside of a small community, barter breaks down; you need something that nobody in town can make or grow. Traveling merchants may provide luxuries like jewelry in exchange for food and lodging, but what if the merchant has just left - or your crops aren't ready to harvest? Every larger society has developed a medium of exchange in which everybody agrees that this object represents a value that can be traded, and to an extent, they all agree on what is worth what. Here in Earth, and in most places, the medium of exchange, the "object of value", is gold and silver. When stamped into disks of standardized size and weight, and marked with the maker's seals, it becomes a "coin", and forms the basis for money. But "money" is only of value for what you can DO with it. You can't eat gold; you can only trade it for something else. It's a marker for keeping score.
Today, the markers for keeping score are bits, ones and zeroes in a computer system.
What is the definition for subsistence economy?
A subsistence economy, is an economy in which the people barely meet their everyday needs. It is often seen as a major factor for poverty in developing nations. This is because the people of the society do not trade with other groups, this may be for a vary of reasons but a major one being their isolation. If the people of the society do not produce enough food, or not a variety the people will become sick and contract disease. This type of living is poverty.
The people also do not have everyday items that we take for granted, such as ipods, TV's, computers, fashionable clothes and shopping malls. This is because the people do not produce enough surplus to trade with, sometimes not even producing a surplus at all.
Where are the Luck and Barter bobble heads in fallout 3?
Luck - Arlington Cemetery North - Arlington House
Barter - Evergreen Mills - Market Bazaar
What are facts about traditional economy in Africa?
They have plenty of foods and they all work as a family!
Who has a traditional economic system?
A traditional economic system would have to be a system based on the tradition of a particular region. that would imply that virtually every country has an economic system that is traditional.
What is the term for trade that is based on the exchange of goods rather than for money?
This is known as bartering.
What is a description of a market economy?
the meaning of a market economy is in which the decision and production are made. The consumption of goods an services are based on voluntary exchange in markets
-Holly P
-Sinahi Z.
What is the same about the money system and the bartering system?
How are money and barter and money alike and different
Broker, retailer, seller, sender, vendor, trafficker, shipper, marketer
A barter can be anything 2 people agree upon. But the 2 people must have a meeting of the minds and must agree, or there is no barter but a theft.
Examples of bartering:
- A college student brought 6 homemade chocolate chip cookies in her lunch. Another student brought double-layer chocolate cake with chocolate icing. They talk and agree that the one student will give 3 cookies in exchange for 1/2 of the cake. They cut the cake, and divide the cookies into 2 parts and trade.
- I have 3 CDs. You love that artist and want the CDs. I want $7 per CD but you have no money. But I saw that you had a nice purse yesterday and I really want it. You tell me you will trade me the purse for FIVE CDs. I don't think your purse is worth 5 cds at $7 each. I say no, but tell you that you can have 3 CDs if you trade me that purse plus a pair of sandals. You say no to that deal, but will give the purse and flip-flops you only wore once for the 3 CDs. We finally agree.
- A woman has horses that need feed, but it is too expensive for her to buy. A man who sells feed says he will bring feed for 1 month if the woman agrees to help him paint his porch. She does not like to paint but she counter-offers that her 3 nephews like to paint. The man and woman agree. With her nephews, the woman barters that if the nephews help the man paint, the woman will let each nephew ride the older horse on Saturday. The nephews paint the porch; the man brings the feed; the nephews get to ride; the horses have feed for 1 month and the woman is happy for her horses; the man is pleased about his porch.
- Two boys like collecting action figures. One boy likes Super-Duper XMen Model BBCC. The other boy has 3 of them, one with no helmet. The boy who likes that model has 2 classic Super-Booper XMen Model AABB. One is worth all 3 of the BBCC. They agree to swap 1 BBCC plus the 1 with no helmet for 1 classic AABB model.
- A woman with 2 children needs a babysitter for 4 days a week. Her friend has 3 children and needs a sitter 2 days a week. They agree 2 days of 3 children "equals" 4 day for 2 children. so they "swap" babysitting. Once a month, each woman makes a big dinner and shares half with the other family. They consider this arrangement a fair trade.
What are characteristics for subsistence economy?
A subsistence economy has benefits that are few and far between, however they do exist. Thus i will proceed to list them. 1) A subsistence economy only creates enough food for its people so no surplus is created and no food will be wasted through any form of disposal. 2) Many subsistence economy's have many resources but not the technology or wealth to exploit aforementioned resources, thus making them ripe for exploitation by rich capitalists, thus driving up the countries GDP. 3) Workers in a subsistence economy are motivated as they must work hard to feed their potentially starving family's, and if they do happen to get fired they will (with almost no doubt) be led to an early grave. 4) There is no shortage of easily exploitable workers in a subsistence economy as everyone wants work and everyone is willing to receive a pittance for the work, and child labor is not outlawed in many subsistence economies. 5) Governments in subsistence economy's are easily corrupt by rich capitalists (and the government can't be unseated by the citizens in any form of rebellion as they are all to weak) which can potentially drive up standards of living in the country if the government uses any of its money to help citizens. 6) In a capitalist economy wants are said to be 'unlimited'. This is the economic problem. But in a subsistence economy all the citizens want is food, water and shelter. There is no time for luxuriating or dreaming. Hopefully i have satisfied your question, and if not this was difficult so stop whining. But advantages of a subsistence economy? What an odd question. On the contrary the only reason I found this was because i am researching the same topic. Have fun out there ~Dylan F~
What economic system replaced bartering?
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.
Who decides what to produce in a traditional economy?
The manufacturers produce whatever they can sell, from the raw materials available to them. Their sales will result from how their products meet the needs and wants of their customers. The decision on what to produce is driven by the market demand of consumers.
How does a traditional economy differ from a capitalist economy?
In a capitalist system, the government answers the three basic questions.
What are countries with traditional economy?
Traditional Economies Traditional economies refers to countries which have their economy based on the basic economic activities of hunting and gathering or farming.
A traditional economy is basically an economic system in which resources are allocated by inheritance, and which has a strong social network and is based on indigenous technology and methods.
Examples: Two countries which would be examples of this would be many of the African countries which use agriculture as their main basis for growing food and for jobs, in addition some Asian countries, such as Bangladesh and Burma also rely on farming (agriculture) as their main way for both employment and for producing food for the family and the nation.
A couple of other African countries who would fit into this category would include Malawi and the Ivory Coast.
Of Africa's 50 or so countries well over half of them would still use traditional ways of gathering and producing food even now in the year 2010.
In Addition A traditional economy is one that, like the name suggests, stems from tradition. All the economic discussions are determined by habit and tradition. In this system, people know their place, if your family is a doctor, you will be too. There is little discrepancy about who will do what and how. Because of this however, new ideas or ways of doing things are scorned, thus there is little growth and the standard of living is lower.
Entrepreneurs are very rarely found in a traditional economy, Life becomes very stable and predictable. This type of economy is best shown in the Eskimos in Alaska and the Amish people.
What are pros and cons of a traditional economy?
Strong socail network based on primtive methods and tools produce more food than they need tade surplus for goods
How did the American Indians use barter?
Its simple, one tribe or "Trade Groups" would go up to the settlers or the U.S. forts and simply trade. Both sides usually got what they wanted. But the White mans goods had diseases that the Lakota had never encountered. Because of this, many Lakota died.
