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15 March, 18:08

What factor influences economic decision-making in a traditional economy?

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  1. 15 March, 18:19
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    Tradition is that cardinal factor. It determines production and distribution. Traditional societies are based on agriculture, fishing, hunting, gathering or a combination of them. Customs, history and old beliefs are major criteria in traditional economies. There is no law of supply and demand. Individuals just do what their parents do.
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