A traditional economy is a system that depends on the customs of the people involved.
A traditional economy is that economic system in which traditions, beliefs and customs helps in shaping the goods and services which are produced in the economy, as well as the rule and manner of their distribution are considered. Countries that use this traditional economic system are often farm-based and rural too.
Traditional economy is also known as a subsistence economy.
Generally a traditional economy is defined by trading and bartering. Generally a little surplus is produced and if any excess goods are produced, they are typically given to a ruling authority or landowner.
Traditional economies are generally based on custom and tradition with economic decisions based on the customs and beliefs of the family, clan, or tribe.
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