Which of the following is a characteristic of a traditional economy?
A. It encourages innovation and change.
B. It is usually based on light industrial production.
C. It has a high standard of living.
D. It revolves around the family unit.
The answer is D. It revolves around the family unit.
The correct answer is D. It revolves around the family unit.
To answer this question, you can begin by understanding the characteristics of a traditional economy. A traditional economy is a system in which economic decisions are based on customs, traditions, and cultural beliefs. Here's how you can determine the correct answer:
A. It encourages innovation and change - This characteristic does not align with a traditional economy. Traditional economies tend to stick to established customs and traditions, and innovation and change are not typically valued.
B. It is usually based on light industrial production - This statement does not describe a characteristic of a traditional economy. Traditional economies often rely on subsistence farming, hunting, gathering, and small-scale production rather than industrial production.
C. It has a high standard of living - This statement is not typically true for traditional economies. Traditional economies often have lower standards of living compared to more modern economies, due to limited access to resources, technology, and services.
D. It revolves around the family unit - This is a key characteristic of a traditional economy. Traditional economies are often centered around the family, with economic activities and decision-making involving multiple generations within a family unit.
Therefore, the correct answer is D. It revolves around the family unit.