ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Ans. The decision to produce goods in a traditional economy is dependent on factors like custom, habit, ritual, or traditions.

Detailed explanation-2: -Traditional economies rely on habit, custom, or ritual to decide what to produce, how to produce it, and to whom to distribute it. In a centrally planned economy the central government makes all decisions about the production and consumption of goods and services.

Detailed explanation-3: -What is Traditional Economy? A traditional economy is a system where goods production and distribution are driven by time-honored beliefs, customs, culture, and traditions. These countries rely mostly on agriculture, gathering, hunting, and fishing. The barter system is characteristic of traditional economies.

Detailed explanation-4: -Mixed Economic System. The mixed economic system, also known as the dual system, combines some of the characteristics of traditional, command, and market economies (Amadeo, 2020).