What characterizes traditional economies?

Traditional economies are primarily characterized by a focus on farming and subsistence. This type of economy is often based on historical practices that have been passed down through generations, where communities rely heavily on agriculture, hunting, and gathering as the main means to obtain food and resources. In these economies, the methods of production and the types of goods produced are typically influenced by the environmental conditions and the cultural traditions of the community.

The emphasis on subsistence means that the goods produced are primarily for the use of the community itself rather than for trade or profit. This stands in contrast to economies that depend on advanced technology, large-scale industry, or complex global trade systems. In a traditional economy, production often aims to meet the immediate needs of the community rather than producing surplus for markets or significant government control and planning.