ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -no because it states that both the producer and consumer gain benefit from the transaction of goods and services and in a traditional economy there is already set production.

Detailed explanation-2: -Capitalism, socialism, and communism can all be found in traditional economies. It all relies on how they’re configured. Capitalism is present in agricultural countries that enable private ownership of farmland.

Detailed explanation-3: -Communism is an economic system where the group owns the factors of production. The factors of production are labor, entrepreneurship, capital, and land. 1 Although the government doesn’t legally own the labor force, the central planners tell the people where they should work.

Detailed explanation-4: -Traditional economic activities include activities like agriculture, hunting, fishing, gathering, and cattle rearing.

Detailed explanation-5: -Prominent examples of communism were the Soviet Union and China. While the former collapsed in 1991, the latter has drastically revised its economic system to include elements of capitalism.