Which economic system is shaped mainly by traditions, customs, and beliefs?

A traditional economy is primarily shaped by customs, traditions, and long-standing practices. In this type of system, economic decisions regarding production and distribution are determined by the cultural heritage and historical patterns of the community. For instance, in a traditional economy, people may engage in subsistence farming, where they grow just enough food to meet their family's needs rather than producing for market sale.

This economic structure is often found in rural or indigenous communities, where practices and social roles are passed down through generations. Consequently, rather than being driven by supply and demand as in a market-based economy, the allocation of resources and goods follows established cultural norms and collective customs.

In contrast, other systems like capitalism are driven by individual profit motives, mixed economies combine elements of both traditional and market influences, and free markets focus on minimal government intervention, emphasizing supply and demand dynamics rather than customs or traditions.