Traditional Economy

Based on agriculture, fishing, hunting, and gathering. Guided by traditions and could possibly use barter instead of money.

Basic economic Questions


The people of the tribe consume the goods that were produced. Most of which are available for everyone in the society.


The working community (hunters, gathers, farmers) would ultimately determine what is needed to be produced. Along with that the change of seasons could also determine what is being harvested and what is being hunted.


The working community (hunters, gathers, farmers) decide the most effective way in achieving the communities goals by using traditions that would've been passed down from generation to generation  


Many indigenous (originating in a particular region) people and poorer parts of the world still use traditional economies such as, parts of Southern Mexico (usually in the poorer areas), South America, and Africa.


Distribution of resources is well-known, everyone knows their role in production, along with what they are likely to receive, less destructive to the environment, and are sustainable for that reason.


Vulnerable to changes in nature, especially the weather. In return traditional economies limit population growth. People starve when harvest or hunting is low. More vulnerable to other economies such as market or command which have superior resources to engage in war or take away needed resources i.e. oil development in an area could possible damage nearby streams and tundra, therefore reducing resources for the traditional economies.


Comment Stream

3 years ago

I think you explain the system well. You could probably add a couple places in Asia to your examples, though.