Question

10. Strengths and weaknesses of the three basic types of economies Imagine you are a consultant who has been asked to summarize the strengths and weaknesses of Customaria, a nation with a pure traditional economy (an economy molded largely by custom or religion). Which of the following would you include in your report as weaknesses of Customaria's economy? Check all that apply. Businesses may be reluctant to hire anyone outside the family because outsiders are less trusted, which limits business growth. People express more dissatisfaction with their lives than those in other economies. Wealth does not get redistributed to the needy, There is little cooperation, relative to other economies.

Answer 1

Correct Answer:

A

C

D

This type of economy is slow to adapt new technologies, lacks cooperation and does not facilitate redistribution of wealth so that economy grows slowly, inequality rises and people do not form alliances to develop in such an economy.