ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The economy is farm-based and trade majorly takes place through bartering, involving the exchange of surplus within the constituents of the community. Such a system is primitive and less-developed.

Detailed explanation-2: -Primitive economy is an underdeveloped economy in which communities we primitive tools and methods to harvest and hunt for food often resulting in little economic growth. Traditional economics are often food in rural regions with high level of subsistence farming.

Detailed explanation-3: -Countries that use this type of economic system are often rural and farm-based. Also known as a subsistence economy, a traditional economy is defined by bartering and trading. A little surplus is produced and if any excess goods are made, they are typically given to a ruling authority or landowner.

Detailed explanation-4: -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-5: -The first is the traditional economy, which is the oldest economic system and can be found in parts of Asia, Africa, and South America. Traditional economies organize their economic affairs the way they have always done (i.e., tradition).