In which type of economy do people make economic decisions based on their group’s ancestral customs and ways of life?
The type of economy in which people make economic decisions based on their group's ancestral customs and ways of life is known as a traditional economy. In a traditional economy, economic decisions such as what to produce, how to produce, and for whom to produce are typically determined by long-standing cultural traditions and practices that have been passed down through generations.
To find the answer to this question, we can start by understanding the different types of economic systems. There are four main types: traditional, command, market, and mixed. By knowing this classification, we can conclude that the type of economy described in the question aligns with the traditional economic system.
To further substantiate this, we can also refer to the characteristics of a traditional economy. In a traditional economy, economic activities are primarily focused on agriculture, hunting, fishing, and gathering. Productions methods generally follow established customs and rituals, and decisions are often made collectively by the community or tribal leaders rather than individuals or market forces.
Therefore, the answer to the question is a traditional economy.