ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Definition. 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-2: -Subsistence farming It required a low level of technology and household labour. These types of farming produce small output. They do not use high yielding varieties of old seeds and fertilizer. Facilities like electricity and irrigation are not available for them.

Detailed explanation-3: -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-4: -Each economy functions based on a unique set of conditions and assumptions. Economic systems can be categorized into four main types: traditional economies, command economies, mixed economies, and market economies.