ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Traditions and cultural values will guide decisions related to producing and distributing goods. Only rational people are responsible for deciding how the economy would operate.

Detailed explanation-2: -In a command economy, the government determines what is produced, how it is produced, and how it is distributed.

Detailed explanation-3: -Traditional economies rely on habit, custom, or ritual to decide what to produce, how to produce it, and to whom to distribute it. In a centrally planned economy the central government makes all decisions about the production and consumption of goods and services.

Detailed explanation-4: -A traditional economic system is based on customs, history and time-honored beliefs. A traditional economy is an economic system in which traditions, customs, and beliefs help shape the goods and services the economy produces, as well as the rule and manner of their distribution.

Detailed explanation-5: -What to produce? ➢ What should be produced in a world with limited resources? How to produce? ➢ What resources should be used? Who consumes what is produced? ➢ Who acquires the product?