ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -How a Traditional Economy Works. A traditional economy is an economy that relies on cultural customs, beliefs, and other traditions for economic decisions.

Detailed explanation-2: -A traditional economy is a system that relies on customs, history, and time-honored beliefs. Tradition guides economic decisions such as production and distribution. Traditional economies depend on agriculture, fishing, hunting, gathering, or some combination of the above. They use barter instead of money.

Detailed explanation-3: -A traditional economy is a basic economic system where customs and traditions are the elements that determine the way trade and commerce are performed. It is a self-sufficient economy where the community engages in different activities to produce goods or services that are required by the rest of the community.

Detailed explanation-4: -A traditional economy-use of scarce resources and economic activity is based on habit or custom.