ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The main advantage of a traditional economy is that the answers to WHAT, HOW, and FOR WHOM to produce are determined by customs and tradition. The main disadvantage of a traditional economy is that it tends to discourage new ideas and new ways of doing things.

Detailed explanation-2: -A traditional economy is a system that relies on customs, history, and time-honored believes. Tradition guides economic decisions such as production and distribution. Societies with traditional economies depend on agriculture, fishing, hunting, gathering, or some combination of them.

Detailed explanation-3: -In a traditional economy, honoring tradition is much more important than accumulating individual wealth. This is because, in such an economic system, decisions are made based on customs and beliefs that have been handed down from generation to generation, and there is no chance of deviating from this pattern.

Detailed explanation-4: -Traditional economic activities include activities like agriculture, hunting, fishing, gathering, and cattle rearing.