Which economic system is based on long-standing customs and beliefs?

The correct answer is based on the understanding that a traditional economy relies heavily on customs, traditions, and beliefs that have been passed down through generations. In this economic system, production and distribution of goods and services are largely dictated by historical practices and cultural norms.

In a traditional economy, individuals often engage in subsistence farming or crafting, relying on methods that have been used within their community for a long time. Economic roles are typically defined by heritage, and the focus is on meeting the basic needs of the community rather than generating profits or engaging in extensive trade or market competition.

This distinguishes a traditional economy from other systems. A capitalist economy emphasizes individual ownership and profit-making, while a market economy operates based on supply and demand with little government intervention. A mixed economy incorporates elements of both command and market systems, combining private enterprise with government regulation. Traditional economies, however, are rooted in established customs and have less emphasis on modern economic practices or market-driven forces.