ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A traditional economy, as the name suggests, is based on a traditional approach. These economies are based on ancient rules and are the most basic type of economy. The focus in a traditional economy is only on the goods and services that match their customs, beliefs, and history.

Detailed explanation-2: -A traditional economy is an economy that relies on cultural customs, beliefs, and other traditions for economic decisions.

Detailed explanation-3: -Traditional System: A pure traditional economy answers the basic economic questions according to tradition. Things are done as they were in the past based on tradition, customs and beliefs (religious). The customs and habits of the past are used to decide what and how goods will be produced, distributed, and consumed.

Detailed explanation-4: -A traditional economy is a basic economic system where customs and traditions are the elements that determine the way trade and commerce are performed. A community engages in different activities individually to produce goods or services required by the rest of the community.

Detailed explanation-5: -The government answers the three key economic questions. Karl Marx advocated a centrally planned economy.