traditional economies are often based on one ir a few agriculture, hunting, fishing, and gathering. often people in traditional economy lives in thier familes or tribes. societies may follow herds of animals in order to hunt and sustain in the traditional ecoomy. many people progress from hunters to farmers where they can place permenant structures and starts a society
They use a barter system instead of money. This is where you trade one good or service for another. Effectively, the rules and exchange rates are arbitrary and it depends on what the members agree on.
For example, let's say a farmer grows wheat. If the farmer needs a fish, then he could trade a bushel of wheat for a pound of fish.
The idea of the social contract had a huge impact on the founding of the nation. The founding fathers particularly Thomas Jefferson, and James Madison believed that a government is established by the free choice of its people and is required to serve the people
