Example of Economic System : Traditional Economic System

 

Traditional economy means an economy where customs, traditions, and beliefs prescribe the principles of economic organization for the production of goods and services.

The sectors of economic activity include agriculture, hunting, fishing, and gathering. 

In many situations, a traditional economy may have no official currency.

A primitive barter trade is used instead of money,

The next possible development of a traditional economy is a farmer’s economy centered on stable agrarian production structures (Rosser et al., 1999).

References: Mamedov, O., Movchan, I., Ishchenko-Padukova, O., Grabowska, M. (2016), Traditional Economy: Innovations, Efficiency and Globalization, Economics and Sociology, Vol. 9, No 2, pp. 61-72. DOI: 10.14254/2071-789X.2016/9-2/4