ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Instead of being driven by profits, a traditional economy entirely depends on the people’s traditions, habits, and rituals to determine what should be produced, how it should be produced, and to whom the products should be distributed. In this type of economy, there is no surplus production.

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: -Traditional economy: Relies on habit or custom.

Detailed explanation-4: -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-5: -Traditional Economy: A system which families, clans, or tribes make economic decisions based on customs and beliefs that have been handed down from generation to generation.