ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -One advantage of a traditional economy is that it does not have a negative impact on the environment. This is because the community relies on natural resources to meet its needs, and there is no waste or surplus.

Detailed explanation-2: -People in a traditional economy usually own their own resources, such as land, labor and tools. They have some freedom to make their own day-to-day decisions about when and how to use their resources. Societies with traditional economies are usually small. Today few purely traditional economies remain in the world.

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: -This is because the focus of traditional economics was only on output production irrespective of human development. In development economics, human growth is central and various factors such as working conditions in factories, standards of living, and mortality rates are taken into consideration.