7
QuizMultiple Choice

Economic Systems

Question 7 • (Galli)WCA 2221 Civics/Economics 1st nine weeks 26-27

Read the paragraph below, and then decide which type of economy is being described.In this economy, community members typically use simple tools to plant and harvest crops. Food supplies are supplemented by hunting animals and gathering plant materials. Members trade with each other to obtain needed goods, as few people hold currency. Little economic growth occurs.What type of economy is being described?

Answer
A
a traditional economy
B
a free market economy
C
a mixed-market economy
D
a command economy

Explanation

A traditional economy relies on long-standing customs and community practices to produce and distribute goods. The use of simple tools, farming, hunting, gathering, and trading without much currency fits that description. Little economic growth is also typical of a traditional economy, so the correct choice is a traditional economy.

AI-written and checked against the verified answer.

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