Kayla is part of a group of parents that have a carpool arrangement to get their kids to and from debate team practices and matches. Kayla picks up all of the kids and takes them home one week in exchange for another parent doing it the following week. This is an example of what kind of arrangement that is an element of a traditional economy?

Question

Possible Answers:
scarcity scarcity bartering bartering elastic elastic laboring

Answer 1

This arrangement is an example of bartering. In a traditional economy, bartering involves exchanging goods or services directly without using money. In this case, Kayla provides transportation one week in exchange for another parent doing the same in the following week, which is a form of reciprocal exchange or bartering.