What economic system is characterized by resource availability based on inheritance and the absence of surpluses?

The traditional economic system is characterized by the allocation of resources based on inheritance and customs rather than market forces or government intervention. In this type of system, the production and distribution of goods and services follow established patterns that have been passed down through generations.

Typically, societies with a traditional economic system rely on subsistence farming, hunting, and gathering, where individuals produce what they need for their survival. Because these systems often do not generate surplus resources, the economy remains relatively stable and predictable, adhering to historical practices and community roles. The absence of surpluses indicates that these economies do not focus on wealth accumulation or expansion; instead, they exist to meet the basic needs of the community within the constraints of the available resources and cultural practices.

This system differs from command, mixed market, and free market economic systems, where resources are allocated based on government directives, market signals, and entrepreneurial decisions, respectively.