1. ANSWER: D. traditional
In a traditional economy, the individual members of the society gets to decide what to produce, how to produce it, and whom to produce it for. In a market economy, businesses are present to decide some of the economic questions while the government is present in a command economy. A mixed economy is a combination of businesses and government answering the economic questions.
2. ANSWER: C. factor payment
We call the payment or income paid to the owner of factors of production like land, labor, and capital in exchange of a productive service the factor payment. A factor payment may come in the form of a wage, rent, interest, or profit depending on the factor of production that the owner owns.
3. ANSWER: D. traditional
As the name suggests, in a traditional economy, traditional ways of the people control the answers to the three basic economy questions. In this type of economy, there are no government or other private businesses controlling the people's economy. Thus, the people are free to follow certain rituals, ancestral laws, or religious practices.
