ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Goods are produced by hunting, fishing, gathering, and harvesting. In a traditional economy everyone owns and uses the land together.

Detailed explanation-2: -In a traditional economy, the customs and habits of the past are used to decide what and how goods will be produced, distributed, and consumed.

Detailed explanation-3: -Traditional economies are largely underdeveloped economies that are characterized by the use of primitive equipment and crude methods. A market economy is more defined and developed. This type of economy is largely based on the laws of demand and supply to the exclusion of government interference.

Detailed explanation-4: -Traditional systems focus on the basics of goods, services, and work, and they are influenced by traditions and beliefs. A centralized authority influences command systems, while a market system is under the control of forces of demand and supply. Lastly, mixed economies are a combination of command and market systems.