ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Definition. 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-2: -Examples of traditional economies include the central African Mbuti, the Australian Aborigines, and the Inuit of Northern Canada. 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.

Detailed explanation-3: -A traditional economy is one in which humans provide themselves with sustenance by customary means, such as hunting, fishing, gathering, or slash and burn agriculture. This has been the most prevalent economic system for most of human history.

Detailed explanation-4: -India’s traditional economy was characterized by a blend of agriculture and handicrafts. While the Indian economy was mainly dependent on agriculture, handicrafts played a major role in influencing the rural economy of India.