A traditional economy is best described as being based on which of the following?

A traditional economy is best described as being based on which of the following?

• A. It is driven by supply and demand with little government control
• B. It is driven by government planning and command
• C. It is based on customs, history and time-honored beliefs
• D. It is driven by mass production for export

Answer: (C)

Traditional economies guide economic choices through customs and long-standing beliefs. In these systems, how people live and work is shaped by family and community traditions, with roles and tasks passed down across generations. Decisions about what to produce, how to produce it, and how to distribute goods come from cultural norms rather than market prices or government plans. You'll often see agriculture or subsistence activities at the center, and change happens slowly as traditions are handed down rather than as a response to profit or policy. This is unlike market economies that rely on supply and demand, or command economies guided by government planning, or industrial systems focused on mass production for export. So the description that centers on customs, history, and time-honored beliefs best captures a traditional economy.

Traditional economies guide economic choices through customs and long-standing beliefs. In these systems, how people live and work is shaped by family and community traditions, with roles and tasks passed down across generations. Decisions about what to produce, how to produce it, and how to distribute goods come from cultural norms rather than market prices or government plans. You'll often see agriculture or subsistence activities at the center, and change happens slowly as traditions are handed down rather than as a response to profit or policy. This is unlike market economies that rely on supply and demand, or command economies guided by government planning, or industrial systems focused on mass production for export. So the description that centers on customs, history, and time-honored beliefs best captures a traditional economy.