Who decides in a traditional economy?

How are traditional economies governed?

Traditional economies are based on tradition, history and time-honored beliefs. Tradition is a guide to economic decisions like production and distribution. Societies with traditional economy rely on agriculture, fishing and hunting or gathering. They trade barter for money.

What are the characteristics of traditional economies? Characteristics of Traditional Economics Traditional economies often depend on one or two of hunting, fishing, agriculture, and gathering. Trade and barter are often used instead of money. Rarely is there a surplus. This means that most goods and services are used up.

What determines the economic answers?

There are three basic types of economic systems that can answer the questions of what, how and for whom: command, market, traditional, mixed, and market. Traditional Economies: Economic decisions in a traditional economy are based on historical precedent and custom.

What makes traditional economy so great?

The advantages of a traditional economy Traditional economies do not produce industrial pollution and maintain a clean environment. Traditional economies produce only what they need and do not waste any time. This allows them to thrive as a community.