Describe the characteristics of EACH economic system given below, in relation to the ownership of the factors of production and the role of the government.
1, Traditional - There is limited specialization and division of labor, based on customs, traditions, and cultural practices, barter and trade based on mutual agreement and the role of the government is minimal, primarily focusing on maintaining order, resolving disputes, and preserving cultural and social traditions.
2, Planned - There is centralized economic planning by the government, lack of competitive market forces in resource allocation, limited consumer choice and variety of goods. The government plays a central role in planning, organizing, and controlling economic activities. It determines what goods and services are produced, how they are produced, and for whom they are produced. The government also manages resources, sets production targets, allocates investments, and regulates prices to achieve economic objectives and social goals. In essence, the government acts as the primary economic planner and regulator, aiming to ensure equitable distribution of resources and achieve collective economic priorities.
