ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Also known as a subsistence economy, a traditional economy is defined by bartering and trading. A little surplus is produced and if any excess goods are made, they are typically given to a ruling authority or landowner.

Detailed explanation-2: -A subsistence economy is an economy directed to basic subsistence (the provision of food, clothing, shelter) rather than to the market. Henceforth, “subsistence” is understood as supporting oneself at a minimum level.

Detailed explanation-3: -subsistence farming, form of farming in which nearly all of the crops or livestock raised are used to maintain the farmer and the farmer’s family, leaving little, if any, surplus for sale or trade. Preindustrial agricultural peoples throughout the world have traditionally practiced subsistence farming.

Detailed explanation-4: -Subsistence farming can be further classified as intensive subsistence and primitive subsistence farming. In intensive subsistence agriculture the farmer cultivates a small plot of land using simple tools and more labour.