What type of economy is characterized by customs and traditions influencing production?

A traditional economy is defined by its reliance on customs, traditions, and longstanding practices to determine the production and distribution of goods and services. In such economies, people often produce what they need for their own consumption, utilizing skills and resources passed down through generations. This can include agricultural practices, hunting, and craftwork that are intrinsically tied to the cultural heritage of the community.

In a traditional economy, economic decisions are made based on what is historically practiced within the society, and these customs often dictate how resources are allocated and how goods are produced. This system contrasts with market economies, which rely on supply and demand, command economies that are controlled by central authorities, and mixed economies that incorporate elements of both market and command systems.

The nature of a traditional economy promotes stability and sustainability through its established methods, reflecting the community's way of life and social norms.