Question

Jamie took a school trip to Africa to study the economy. In one village, he saw that the people performed only unskilled activities such as hunting and fishing. Also, they did not use money to acquire goods. Instead, they simply exchanged goods with each other. What type of economy does this village have?

A. communist
B. capitalist
C. Mixed
D. Traditional

Answer 1

The village in which the people perform only unskilled activities such as hunting and fishing and not use money to acquire goods, but simply exchanged goods with each other has traditional type of economy. Correct answer: D The traditional economy is based on agriculture, hunting, fishing, and gathering and barter and trade is often used in place of money.

Answer 2

The correct answer is D. Traditional. A traditional economy is a system that solely depends on customs, history and traditional beliefs. In this type of economy, tradition directs economic choices; for example production and supply. It rests on agriculture, hunting, gathering, and fishing. Trade is by barter not money.