ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In a traditional society, modern science and technology are either not available or are not being systematically applied. However, there may be ad hoc application of innovations. Production can also increase due to increase in acreage. Domestic and foreign trade can change in composition.

Detailed explanation-2: -Stage 1 Traditional Society-The economy is dominated by subsistence activity. Output is consumed by producers; it is not traded. Trade is barter where goods are exchanged directly for other goods. Agriculture is the most important industry.

Detailed explanation-3: -Using these ideas, Rostow penned his classic Stages of Economic Growth in 1960, which presented five steps through which all countries must pass to become developed: 1) traditional society, 2) preconditions to take-off, 3) take-off, 4) drive to maturity and 5) age of high mass consumption.

Detailed explanation-4: -In other words, all societies, once engaged in the modernization process, follow a predetermined sequence of developmental stages: traditional economies, transition to takeoff, takeoff itself, drive to maturity, age of high consumption, and postindustrial society (Chirot and Hall, 1982: 82).

Detailed explanation-5: -Traditional Society: This stage is characterized by a subsistent, agricultural-based economy with intensive labor and low levels of trading, and a population that does not have a scientific perspective on the world and technology.