WORLD HISTORY

Detailed explanation-1: -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-2: -Common Characteristics of a Traditional Economy The community is self-sustained through fishing, hunting and farming. The traditional economic system does not trade. The market participants consume the products that are produced/collected, and they rely on bartering to get the products that they want.

Detailed explanation-3: -The 4 main types of economic systems are traditional economies, command economies, market economies, and mixed economies.

Detailed explanation-4: -People in a traditional economy usually own their own resources, such as land, labor and tools. They have some freedom to make their own day-to-day decisions about when and how to use their resources. Societies with traditional economies are usually small. Today few purely traditional economies remain in the world.

Detailed explanation-5: -Traditional economies have several characteristics that are unique compared to modern economies. They are geographically and locally based, they have a bartering system, they have little to no surplus or goods, and they don’t waste any parts of goods they produce.