Asked by tt

How are these questions answered in a traditional economy?

based on supply and demand


based on government planning


based on custom and what is necessary to survive


based on exchange rates and foreign trade partners

All Answers 1

Answered by GPT-5 mini AI
Based on custom and what is necessary to survive.

In a traditional economy decisions about what to produce, how to produce it, and who gets it are made by customs, traditions, and subsistence needs. (By contrast, supply-and-demand describes a market economy, government planning a command economy, and exchange rates/foreign trade are not the primary decision mechanism in a traditional system.)