Which basic economic goal is most easily achieved in a traditional economy?

• A. Economic stability
• B. Economic efficiency
• C. Economic security
• D. Economic equity

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the characteristics of a traditional economy. A traditional economy relies on customs, traditions, and beliefs to make economic decisions, often based on subsistence farming, hunting, or barter systems.
2. Step 2: Define the basic economic goals: Economic stability (steady growth and low inflation), Economic efficiency (optimal use of resources), Economic security (protection against economic risks), and Economic equity (fair distribution of wealth).
3. Step 3: Analyze how a traditional economy performs in relation to each goal. For example, because it is based on established customs and predictable patterns, it tends to have stable economic activities with little change or fluctuation.
4. Step 4: Recognize that economic efficiency and equity are often limited in traditional economies due to lack of innovation and rigid social structures, and economic security may be weak due to vulnerability to external shocks.
5. Step 5: Conclude that the economic goal most easily achieved in a traditional economy is economic stability, as the reliance on tradition leads to consistent and predictable economic behavior.