What is a Traditional Economy?

A traditional economy is an economic system where decisions regarding production, distribution, and consumption of goods and services are based on customs, traditions, and cultural practices. In this type of economy, economic activities are typically passed down through generations, and most production is aimed at sustaining the community rather than generating profit. It often relies on agriculture, hunting, and fishing, with little technological advancement or external trade. Traditional economies are usually found in rural or less-developed areas where communities focus on self-sufficiency and local exchange rather than market-driven economics.