Which term describes the economic system guided by customs and time-honored beliefs?

• A. Theme
• B. Traditional economy
• C. Tradition
• D. Trade network

Answer: (B)

A traditional economy is an economic system guided by customs and time-honored beliefs. In this setup, decisions about what to produce, how to produce it, and for whom are shaped by long-standing practices and the community’s cultural norms, rather than by market prices or government plans. People often rely on familiar activities—like farming, hunting, fishing, or bartering—using techniques passed down through generations. Change tends to be slow, because preserving social roles and continuity is valued more than rapid innovation. This description fits the idea of an economy rooted in tradition, distinct from systems driven by market forces or centralized planning. The other terms don’t describe an entire economic framework: a theme is a central idea, tradition is a cultural concept, and a trade network is a pattern of exchanging goods, not a full economic system.