Question

Read the text and answer the question.
A small society of people lives by raising livestock and gathering fruits and vegetables from their environment. As the seasons change, the people move to warmer climates, where food continues to grow. They learned which plants to eat and how to care for animals from their ancestors. If they need something they cannot make themselves, the people will barter with other groups.
What kind of economy does the society described in the text have?

a mixed economy


a pure command economy


a pure market economy


a traditional economy

Answer 1

A traditional economy — production and distribution are based on customs, subsistence activities (raising livestock, gathering), ancestral knowledge, and barter.