Final answer:
A Traditional Economy is an economic system based on traditional customs and practices. It relies on tradition and cultural norms for decisions on production, distribution, and consumption of goods and services.
Step-by-step explanation:
A Traditional Economy is an economic system where goods and services are produced, distributed, and consumed based on traditional customs, beliefs, and practices. In this type of economy, the decisions regarding what to produce, how to produce, and for whom to produce are often determined by tradition and cultural norms rather than market forces or government intervention.
For example, in a traditional economy, if hunting and gathering has been the traditional way of obtaining food, people will continue to hunt and gather rather than adopting modern agricultural practices. Similarly, if bartering has been the traditional method of exchange, people will continue to trade goods and services instead of using a monetary system.
It is important to note that traditional economies are typically found in rural and tribal societies where subsistence farming, fishing, and small-scale craft production are common.
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