Question

question 14
what is one disadvantage of a traditional economy?
a. the system is unstable with periods of prosperity alternating with periods of recession.
b. the standard of living of most people is very low, and most people barely meet their basic needs.
c. the market distributes incomes unequally according to how society values what people do.
d. workers have little incentive to work hard, and economic performance suffers.

Explanation:

• Option A describes a market economy's business cycles, not traditional.
• Option B: Traditional economies rely on customs/barter, lack modern tech/resources, so most have low living standards, barely meeting basic needs.
• Option C is about market economy income distribution.
• Option D is a disadvantage of command economies (lack of incentive), not traditional.

Answer:

B. The standard of living of most people is very low, and most people barely meet their basic needs.