Question

Give an example of how a nation's culture affects its economic system.

Answer 1

Culture affect economic system as how the people belonging to that particular culture keeps views about scarce resources such as, technology, labour market participation, accumulation of capital.

For example, India, Africa are labour intensive countries and people at rural area thinks that technology takes away there employment. Hence there economy in labour abundant but not that developed in terms of technology and hence, in optimal utilisation of their resources.