One basic economic system is traditional economy. Describe this system in a paragraph of 50 words.?

Question

One basic economic system is traditional economy. Describe this system in a paragraph of 50 words.

Answer 1

In a traditional economy production and consumption are based on heritage and customs.  In a traditional economy, if your father was a blacksmith, you will probably become a blacksmith even if you would make a better farmer.  Also, certain people may not be allowed to consume certain goods, such as purple textiles, in a traditional economy.

56 words..

Answer 2

A traditional economy is an an economic system where there is little trade.  Most people are subsistence farmers and produce their own clothing and shelter.  There is little social mobility, because resources are allocated by inheritance.  There are no firms to organize production, and this makes economic growth difficult.