Question

What drives economic activity in a traditional economy and who is responsible for making the economic decisions in a command economy?

Answer 1

Customs, traditions and old beliefs drive economic activity in a traditional economy.  This type of economy is practiced in agriculture based rural communities.  A capable authority such as government, government authorised agencies and central planning organisations are held responsible for making decisions in a command economy.  Developed regions practice command economy where production and distribution of goods and services is decided by a commanding authority.