An economy where each generation lives the way earlier generations did is referred to as a traditional economy. A traditional economy is an economic system in which economic decisions are based on customs, beliefs, and traditions. In this type of economy, the methods of production, distribution, and consumption are passed down from generation to generation, often through oral tradition. Agriculture and hunting-gathering are the most common forms of economic activity in traditional economies. The economic decisions are taken by the community as a whole or by a tribal leader, rather than by individual households or firms.