Which of the following is an advantage of a traditional economy?

• A. Rapid innovation and technological advancement.
• B. Economic roles are clearly defined and stable over time.
• C. High degree of consumer choice and variety.
• D. Efficient allocation of resources through market prices.

Answer: (B)

Verified step by step guidance

1. Step 1: Understand what a traditional economy is. A traditional economy is one where economic decisions are based on customs, traditions, and beliefs, often passed down through generations.
2. Step 2: Identify the characteristics of a traditional economy. These typically include clearly defined roles for individuals and families, stability over time, and reliance on subsistence farming or hunting.
3. Step 3: Analyze each option in the context of a traditional economy. For example, rapid innovation and technological advancement are more typical of market or mixed economies, not traditional ones.
4. Step 4: Recognize that economic roles being clearly defined and stable over time aligns with the nature of a traditional economy, where roles and production methods rarely change.
5. Step 5: Conclude that the advantage of a traditional economy is the stability and clarity of economic roles, rather than consumer choice or market efficiency.