ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The main disadvantage of a traditional economy is that it tends to discourage new ideas and new ways of doing things.

Detailed explanation-2: -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-3: -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-4: -It isolates the people within that economy. Large outside economies can overwhelm a traditional economy. It offers few choices. There may be a lower overall quality of life. It creates specific health risks. Unpredictability creates survival uncertainties. More items •05-Aug-2017