False. In a traditional economy, the answers to the three basic economic questions—what to produce, how to produce, and for whom to produce—are not determined by the government. Instead, these decisions are based on customs, traditions, and cultural practices. Economic activities are often guided by historical precedents and community needs rather than centralized government directives. This type of economy typically relies on subsistence farming and barter systems, where goods and services are produced for personal use rather than for trade in a market. So, it’s the customs and traditions of the community that dictate economic decisions, not government intervention.
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