ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -What is Traditional Economy? A traditional economy is a system where goods production and distribution are driven by time-honored beliefs, customs, culture, and traditions. These countries rely mostly on agriculture, gathering, hunting, and fishing. The barter system is characteristic of traditional economies.

Detailed explanation-2: -People in the economy have conventional occupations like farming, fishing, hunting or cattle-rearing. There is no wastage in the traditional economy because the people in the economy consumes whatever they produce or gather.

Detailed explanation-3: -A traditional economy is a framework that is based on traditions, the past, and enduring ideals. Economic choices like production and distribution are influenced by tradition. Traditional economies rely on farming, fishing, hunting, gathering, or some combination of these activities. They do not use cash; they barter.

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.