Final answer:
Papua New Guinea best exemplifies a traditional economy, where economic activities are structured around historical traditions and families largely engage in subsistence farming. This is in contrast to other listed options like the United States, China, and Saudi Arabia, which have mixed or state-dominated economies.
Step-by-step explanation:
The country or region that best exemplifies a traditional economy is D) Papua New Guinea. A traditional economy is the oldest economic system, found in various parts of the world. In traditional economies, economic activities are organized based on longstanding traditions. Occupations often remain within the family, and most families are involved in farming, using traditional methods to grow their crops. People in a traditional economy tend to consume what they produce, and due to the adherence to tradition, there is typically little economic progress or development.
On the contrary, the United States has a mixed economy with advanced technology and industrialization, China has a socialist market economy with elements of a command system, and Saudi Arabia has a mixed economy with a strong state sector primarily based on the oil industry. Therefore, these options do not reflect a traditional economy as clearly as Papua New Guinea does.