ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Two current examples of a traditional or custom based economy are Bhutan and Haiti (Haiti is not a traditional economy according to CIA Factbook ). Traditional economies may be based on custom and tradition, with economic decisions based on customs or beliefs of the community, family, clan, or tribe.

Detailed explanation-2: -Answer and Explanation: An economy in which production is based upon customs and traditions and the economic roles are typically passed down from one generation to another is known as Traditional Economy.

Detailed explanation-3: -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-4: -The primary group for whom goods and services are produced in a traditional economy is the tribe or family group. In a command economy, the central government decides what goods and services will be produced, what wages will be paid to workers, what jobs the workers do, as well as the prices of goods.