Which economic system relies on beliefs and customs to determine production and distribution?

The economic system that relies on beliefs and customs to determine production and distribution is the traditional economy. In this type of system, economic decisions are often based on cultural practices and established traditions, passed down through generations. The methods of production and the goods produced are typically what have been used historically in a community, with little innovation or change.

Traditional economies are typically found in rural areas where people engage in subsistence farming and barter-based trade. Economic roles are often defined by family lineage, meaning that individuals take on specific roles that align with their culture and customs. Because this system values historical practices and social structures, it contrasts with other economic systems, such as market or command economies, where decisions are made based on supply and demand or centralized planning, respectively.

In summary, the reliance on customs and traditions to guide economic activities is the key characteristic that makes the traditional economy the correct choice in this context.