Final answer:
Both market economic and traditional economic systems involve resource allocation, but differ in how this allocation is determined. In traditional economies, decisions are based on customs and traditions, while market economies rely on market interactions and supply and demand.
Step-by-step explanation:
In both a market economic system and a traditional economic system, resources are allocated to produce goods and services. However, there are differences in how this allocation is determined.
In a traditional economic system, economic decisions are based on customs, traditions, and cultural beliefs. Occupations are often passed down through generations within family units, and individuals produce what they need for themselves and their community. There is less emphasis on economic progress and development.
Similarly, in a market economic system, resources are allocated based on the interactions of consumers and producers in the market. Economic decisions are driven by supply and demand, and individuals have the freedom to choose their occupations and produce goods and services for profit. Market economies typically prioritize economic progress and development.