TRADITIONAL SYSTEM

1. Indicate whether the following statements are true or false:

Under a traditional system, the factors of production are owned by the government.

True

Think again. The statement is false.

In a traditional system, the factors of production are owned by the community. The government only owns the factors of production in a command economy.

False

You are right! The statement is false.

In a traditional system, the factors of production are owned by the community. The government only owns the factors of production in a command economy.

2. In a traditional system, bartering plays an important role.

In a traditional system, bartering plays an important role.

True

You are right! The statement is true.

In a traditional system, the exchange of goods for other goods (barter) is an important element of the economy. For example, as agriculture is very important in a traditional system, a typical barter transaction would be if a maize farmer, trades maize for some milk, with a diary farmer.

False

Think again. The statement is true.

In a traditional system, the exchange of goods for other goods (barter) is an important element of the economy.

False

Think again. The statement is true.

In a traditional system, the exchange of goods for other goods (barter) is an important element of the economy.

3. A weakness of the traditional system is that it is slow to adapt to new technology.

A weakness of the traditional system is that it is slow to adapt to new technology.

True

You are right! The statement is indeed true.

A traditional system is slow to adjust to new technologies. A traditional system favours custom, how things have been done in the past, above innovation or new ideas.

False

Think again. The statement is false.

A traditional system is slow to adjust to new technologies. A traditional system favours custom, how things have been done in the past, above innovation or new ideas.

Glossary

1. Indicate whether the following statements are true or false:

2. In a traditional system, bartering plays an important role.

3. A weakness of the traditional system is that it is slow to adapt to new technology.