Which economy relies on customs and traditions and handed-down roles?

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

Answer: (A)

An economy that uses customs and handed-down roles guiding what to produce, how to produce it, and for whom to produce is driven by tradition. In this setup, families and communities follow practices passed from generation to generation, so production tends to reflect long-held patterns rather than current market prices or government directives. Decisions are shaped by social roles and cultural norms, leading to slower change and a focus on local or subsistence needs. This is different from market economies, which rely on prices and voluntary trading, or command economies, where a central authority plans production, or mixed economies, which combine elements of both. So, the idea of tradition guiding economic activity is what defines this type of economy.