ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The regular economic decisions in the society are taken based on traditions, cultural beliefs and experiences imparted by the elders. Trading and bartering are two primary modes of payment in a traditional economy.

Detailed explanation-2: -In an traditional economy individuals and tribes make the decisions. Often these decisions are based on customs, traditions, and religious beliefs.

Detailed explanation-3: -A traditional economy is an economy that relies on cultural customs, beliefs, and other traditions for economic decisions.

Detailed explanation-4: -System: Traditional The customs and habits of the past are used to decide what and how goods will be, distributed, and consumed. Within this system, each member of society knows in early life what her or his role will be because jobs are handed down from generation to generation.

Detailed explanation-5: -What is Traditional Economics? Traditional economic theory relies on three fundamental assumptions: People are rational. People make decisions based on self-interest. People will change their thoughts and beliefs based on new information.