Traditional Economy, Command Economy and Market Economy

Economies
Traditional Economy, Command Economy & Market Economy
Traditional Economy
Definition
A traditional economy is an economic system where customs, traditions and beliefs determine the goods and services created by the society. It is dependent on agriculture, hunting and gathering, fishing or any combination of the above. Also called a subsistence economy, it may involve use of barter trade instead of currency.
Characteristics
Traditional economies are often based on one or a few of the following: agriculture, hunting, fishing, and gathering.
Barter and trade is often used in place of money.
Often there is little surplus produced. In other words, most of the goods and services are fully used.
Often people in a traditional economy live in families or tribes.
Societies may follow herds of animals in order to hunt and sustain those in the traditional economy.
Many people progress from hunters to farmers where they can place permanent structures and start a society.

Advantages
Production of goods for people’s survival
Traditional economy is more about producing goods. This economic system supplies sufficient amount of foods to the people. It greatly reduces the amount of surplus or waste that typically would have occurred.
Knowing People’s Role
In this particular economy, people can already recognize what their role in the society or community is. They need not to exert effort on a role which is not suitable for their skills and abilities thus no duplication of role or effort is evident on it.
Less Destructive
Since traditional economy is more on the culture and belief of the people, it will always sustain an environment friendly surrounding that aims to give the people their needs effectively and accordingly without affecting the nature of the environment.
Harmony Among The People
Traditional economy promotes cooperation and harmonious relationship. It provides people with equal chances to practiced working with other people harmoniously