What economic system is characterized by producing only what is necessary for survival?

The traditional economy is characterized by producing only what is necessary for survival, as it is primarily focused on subsistence farming and barter systems. In a traditional economy, communities rely on age-old customs and practices to meet their basic needs for food, clothing, and shelter. Production is typically small-scale and localized, often guided by the traditions and needs of the community rather than by market demands or profit motives.

In this economic system, individuals and families produce just enough to sustain their households, and any surplus is often traded with other members of the community rather than sold in a market context. This type of economy is generally found in rural and underdeveloped areas where modernization and industrialization have not significantly impacted production methods.

The other options, such as market economy and communist command economy, focus on different principles. A market economy operates on supply and demand with minimal government intervention, while a communist command economy is centrally planned, where the government controls and oversees all production and distribution of goods and services. A business-format franchise involves a specific business model that does not relate to the survival-based production characteristic of traditional economies.