There is a fourth type of economic system: a traditional economy. A traditional economy is based on traditions and customs. In a traditional economy, economic activity tends to center on family, tribe or some other type of social group. Historical precedent and a society’s environment determine the means by which resources are collected, produced and distributed. For example, some traditional economies focus on farming. Others are built around hunting and gathering. These highly specific methods of production result in very little choice and competition. Societal roles are often clearly defined and participants tend to understand the system very well. Due to the historical nature and rigid structure of most traditional economies, change and innovation is rare. Furthermore, social mobility is limited as birth typically determines one’s role in society. Though traditional economies may never produce advanced technology or compete with world powers, there are plenty of examples of sophisticated, sustainable systems that have stood the test of time. According to the passage, what determines how resources are collected, produced and distributed in a traditional economy? A birth and societal role B choice and competition C technology and innovation D historical precedent and environment