Identifying Characteristics of a Traditional Economy What are the characteristics of a traditional economy? Check four correct answers. Individuals have little control over economic decisions. Economic activities occur mainly within a family, clan, or tribe. Technology is limited to simple tools such as plows and hand axes. The government sets the prices of goods and services and distributes them. Trade is limited to barter, or trading goods or services for other goods or services. Methods for farming, hunting, and gathering change little from generation to generation.

The correct answers are B) Economic activities occur mainly within a family, clan, or tribe. C) Technology is limited to simple tools such as plows and hand axes. E) Trade is limited to barter or trading goods or services for other goods or services. F) Methods for farming, hunting, and gathering change little from generation to generation.

These are the four characteristics of a traditional economy are.

We are talking about the most basic form of economy based on basic forms of production and trade, used in ancient civilizations.

On the other hand, modern free trade economies are based on supply and demand. In this form of economy, the government has minimum regulation and many competitors offer different products and services to consumers. Technology has been playing a key factor in modern economies.

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