Final answer:
A traditional economy is indeed one where goods and services are based on tradition and survival needs, as these economies operate based on long-standing methods and processes, typically with minimal change or development.
Step-by-step explanation:
The statement that a traditional economy is one in which goods and services are based on tradition and survival needs is true. Traditional economies, found in parts of Asia, Africa, and South America, organize their economic affairs based on tradition. This involves family occupations, traditional farming methods, and a general expectation that what you produce is what you consume. There is little economic progress or development as traditional ways of life drive the economy.
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