ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A traditional economy is an economy that relies on cultural customs, beliefs, and other traditions for economic decisions. The five characteristics of a traditional economy are: Centering around a family or tribe. Existing in a hunter-gatherer and nomadic society.

Detailed explanation-2: -A traditional economy is a system that relies on customs, history, and time-honored beliefs. Tradition guides economic decisions such as production and distribution. Traditional economies depend on agriculture, fishing, hunting, gathering, or some combination of the above.

Detailed explanation-3: -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.

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.