An economy in which production is based on customs and traditions and economic roles are typically passed down from one generation to the next is known as what?

• A. Command economy
• B. Mixed economy
• C. Market economy
• D. Traditional economy

Answer: (D)

Tradition-driven economic systems organize production around long-standing customs and values. In this setup, what is produced, how it is produced, and who receives the goods are guided by inherited practices and cultural norms, with roles often passed from one generation to the next. Decisions come from tradition rather than market signals or government plans, so the focus is usually on subsistence and stability rather than rapid change or mass production. That description fits an economy where production follows customs and economic roles are handed down through generations.