ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Traditional economies are often based on hunting, fishing and gathering or farming. Often in a traditional economy, there is no surplus and no resources, and bartering is used to exchange for needed goods.

Detailed explanation-2: -The barter system is characteristic of traditional economies. It marks the evolution of the market economy-historically, every country developed out of some form of the traditional economy. Contemporarily though, most traditional countries have transformed into mixed economies.

Detailed explanation-3: -A barter economy is a cashless economic system in which services and goods are traded at negotiated rates. Barter-based economies are one of the earliest, predating monetary systems and even recorded history. People can successfully use barter in many almost any field.

Detailed explanation-4: -People in the economy have conventional occupations like farming, fishing, hunting or cattle-rearing. There is no wastage in the traditional economy because the people in the economy consumes whatever they produce or gather.

Detailed explanation-5: -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.