QQuestionEconomics
QuestionEconomics
In which type of economy is bartering common?
A. Pure market economy
B. Pure command economy
C. Traditional economy
D. Mixed economy
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Answer
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Step 1:: Understand the question and its context
The question asks about the type of economy where bartering is common. Bartering is the direct exchange of goods and services between two parties without using a medium of exchange, such as money.
Step 2:: Recall the definitions of various economy types
A pure market economy is a system where economic decisions and transactions are determined by the forces of supply and demand, without any government intervention. A pure command economy is a system where the government controls all aspects of production, distribution, and pricing. A traditional economy is based on customs, beliefs, and traditions, with little to no economic interference from the government. A mixed economy is a system that combines elements of both market and command economies, allowing for both private and public sector involvement.
Step 3:: Analyze the options
Bartering is not common in a pure market economy or a pure command economy because these systems primarily use money as a medium of exchange. However, in traditional and mixed economies, bartering can be more common due to the limited use of money or the preservation of cultural practices.
Step 4:: Select the correct answer
Based on the analysis, the correct answer is: C. Traditional economy
Final Answer
Bartering is most common in a traditional economy, where customs, beliefs, and traditions play a significant role in economic activities.
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