Which of the following is not considered a typical feature of a modern economy?

Introduction / Context:
Economic history and development studies often compare traditional economies with modern economies. A modern economy is usually associated with industrialisation, commercialisation and extensive use of money and markets. This question asks you to identify which characteristic does not fit the description of a modern economy and instead belongs more to an earlier, traditional stage.

Given Data / Assumptions:

• We are comparing different features or characteristics of economies.
• Modern economy refers to advanced, industrial or post industrial systems.
• Traditional systems are often agrarian and based on self sufficiency.
• The options list four specific characteristics and one must be excluded.

Concept / Approach:
A modern economy is characterised by large scale production, use of advanced technology, extensive monetary transactions, high degree of specialisation and production mainly for the market. By contrast, traditional village economies are often self sufficient, producing primarily for local needs and relying heavily on barter and non monetary exchanges. Therefore, the clue in this question is the phrase self sufficient village system, which clearly belongs more to a traditional setting, not to a modern economy.

Step-by-Step Solution:
1. Identify features commonly associated with modern economies such as money, markets and capital intensive production. 2. Options B, C and D all align with those features: money economy, capital intensive production and production for the market. 3. Option E, widespread use of banking and credit, also fits well with a developed, modern economy. 4. Option A, self sufficient village based system, describes an economy where most needs are met locally and there is limited market exchange. 5. Therefore, Option A is the one that is not a typical characteristic of a modern economy.

Verification / Alternative check:
You can think of a rural subsistence village where households grow their own food, make their own simple tools and trade only occasionally in local markets. Such a system contrasts sharply with urban industrial economies where firms produce for national or global markets, workers specialise in particular tasks, and transactions are mainly in money. This contrast confirms that self sufficient villages are a feature of traditional economies, not modern ones.

Why Other Options Are Wrong:
Option B: A money based economy is central to modern economic life, where prices, wages and contracts are all denominated in currency.
Option C: Capital intensive production using machinery and technology is a key feature of industrial and post industrial economies.
Option D: Production for the market reflects specialisation and trade, which are hallmarks of modern economic systems.
Option E: Banking and credit institutions support investment, trade and consumption, and are strongly associated with modern economic structures.

Common Pitfalls:
Sometimes students see the word village and think of development programmes in modern times, but the phrase self sufficient village system refers to an older pattern of limited trade and market activity. Another mistake is to think that capital intensive production is exclusive to rich countries, but the question is about characteristics, not about which countries are rich or poor. Focus on whether the characteristic reflects advanced specialisation and market orientation or local self sufficiency.

Final Answer:
Self sufficient village based system