What is a traditional economy?

Economics Traditional Economy Questions



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What is a traditional economy?

A traditional economy is an economic system where economic decisions are based on customs, traditions, and cultural beliefs that have been passed down through generations. In this type of economy, resources are allocated and goods and services are produced in the same way as they have been for many years, with little to no technological advancements or innovation. Traditional economies are typically found in rural and remote areas, and they rely heavily on agriculture, hunting, fishing, and gathering for sustenance and trade.