Traditional Economy
In a traditional economy, the customs and habits of the past are used to decide what and how good will be produced, distributed and consumed. In this system, each member of the society knows early in life what his or her role in the larger group will be. Because jobs are handed down from generation to generation, there is very little change in the system over the generations. In a traditional economy, people are depended upon to fill their traditional roles. If some people are not there to do their part, the system can break down. Farming, hunting and gathering, and cattle herding are often part of a traditional economy. There are no examples of traditional economies in Europe.