Question

The following statements describe a certain country's economy. What type of economy does this country have?

I. Most citizens farm at the subsistence level.

II. Citizens barter with each other for needed items.

III. Doctors and professionals often accept food or other goods in exchange for services.


A.

a market economy


B.

a traditional economy


C.

a planned economy


D.

a mixed economy

Answer 1

This would be considered a "traditional economy", since these types of economies are most prominent in agricultural areas where there is little or no trade with outside nations.

Answer 2

B. A traditional economy

Countries with a traditional economy depend of a combination of agriculture, hunting, fishing and gathering. As they do not have strong currencies they tend to mostly barter than pay for products, and many of the professionals have to accept payments in goods.