Which economic system bases production on customs and habits?

Which economic system bases production on customs and habits?

• A. Command
• B. Market
• C. Traditional
• D. Free enterprise

Answer: (C)

The idea being tested is how an economic system decides what to produce based on customs and habits. In a traditional economy, production follows long-established patterns within a community. People do what their ancestors did, passing skills and roles down through generations, and decisions about what goods to make and how to make them come from those traditional practices and social expectations. Work is often tied to family or clan roles, and activities like farming, fishing, or crafting are done in ways that meet basic needs rather than aiming for rapid growth or new technologies. Because the driving force is culture and habit rather than market signals or government planning, production stays steady and customary, with limited change over time. This contrasts with other systems where the government might direct what is produced, or where prices and competition push production decisions based on supply and demand.

The idea being tested is how an economic system decides what to produce based on customs and habits. In a traditional economy, production follows long-established patterns within a community. People do what their ancestors did, passing skills and roles down through generations, and decisions about what goods to make and how to make them come from those traditional practices and social expectations. Work is often tied to family or clan roles, and activities like farming, fishing, or crafting are done in ways that meet basic needs rather than aiming for rapid growth or new technologies. Because the driving force is culture and habit rather than market signals or government planning, production stays steady and customary, with limited change over time. This contrasts with other systems where the government might direct what is produced, or where prices and competition push production decisions based on supply and demand.