Question

due: monday, october 6, 2025 at 11:59 pm
read the attached pdf on economic systems. read traditional and command systems only
on your paper, answer the following questions. answer only.
traditional system

1. what decides how goods will be produced, distributed and consumed?
2. how are jobs passed down?
3. what 3 activities are part of the economy?

command system

1. who makes the basic economic decisions in this system?
2. what is a problem with the command system?
3. what is a benefit of the command system?
4. in your own words, explain 1 pro and 1 con of a command system

a) pro-
b) con-

Explanation:

1. In a traditional system, customs, traditions, and cultural beliefs decide production, distribution, and consumption. Jobs are often passed down through family - based or clan - based structures. The three economic activities are production, distribution, and consumption.
2. In a command system, the government makes basic economic decisions. A problem can be lack of consumer - driven innovation due to central planning. A benefit is the ability to quickly mobilize resources for large - scale projects. One pro could be efficient resource allocation for public goods, and one con could be inefficiency due to lack of market competition.

Answer:

1. Customs, traditions, and cultural beliefs.
2. Through family - based or clan - based structures.
3. Production, distribution, consumption.
4. The government.
5. Lack of consumer - driven innovation.
6. Ability to quickly mobilize resources for large - scale projects.
7. A) Pro: Efficient resource allocation for public goods.

B) Con: Inefficiency due to lack of market competition.