Question

Which of the following is true of the incas' trade and economy?

O the wealth of the inca empire helped produce large classes of merchants and skilled artisans.
O the state financed itself primarily by taxing the production of peasants working on private lands.
O the central government controlled long-distance trade but allowed local trade to be carried out among residents and subjects.
O the incas largely avoided long-distance trade and simply relied on tribute from subject peoples for income.
O the incas produced highly sought after manufactured goods that were sold to and traded with nearby peoples.

Answer 1

The Inca empire had a centralized economy where trade and production were controlled by the state. Goods and labor were redistributed through the ayllu system and state storehouses, with no significant merchant class or currency. The economy functioned through tribute, communal work, and redistribution for the common good.

Step-by-step explanation:

The Inca Empire's economy and trade were highly centralized and controlled by the state, with an emphasis on meeting the needs of the population rather than generating wealth through a class of merchants or artisans. The Inca government controlled both long-distance and local trade, ensuring that goods were distributed according to need rather than through market exchanges. There was no currency and no significant merchant class; instead, the Inca economy was based on a system of tribute and redistribution of goods and labor, known as the mita system. The people were required to contribute labor to the state for public works and in return, they received the necessities of life from state storehouses.

Each community played a part in the larger economy through the ayllu system, which functioned like a social safety net. Surplus goods were stored by the state and distributed in times of need. Peasants worked the land and contributed a portion of their produce to the state, which in turn managed large storehouses of food and goods to support the empire's infrastructure, including its expansive road network. Major construction projects, such as roads and irrigation systems, were undertaken by conscripted laborers who were supported by the state while they worked on these projects.