Question

Read the paragraph below, and then decide which type of economy is being described.

In this economy, community members typically use simple tools to plant and harvest crops. Food supplies are supplemented by hunting animals and gathering plant materials. Members trade with each other to obtain needed goods, as few people hold currency. Little economic growth occurs.

What type of economy is being described?

a traditional economy
a free market economy
a mixed-market economy
a command economy

Answer 1

a traditional economy

Explanation: The description—use of simple tools, hunting/gathering, bartering rather than currency, and little economic growth—matches a traditional economy, where customs and subsistence activities determine production and trade.