Question

In Country X, people rarely engage in market transactions (exchange of money). For the most part, they do not need to. Families grow their own vegetables and raise their own animals or hunt to get meat. Certain times get tough for people in Country X, like when the winters are particularly cold or animals change their migration patterns. For this reason, it is important that families stock up in “good times” and develop relationships with neighbors with whom they can share or trade.
Which economy is being described above?

Answer 1

Hi there! Hopefully this helps!

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The economy you are describing is a Traditional Economy.

Countries that use this type of economic system are often rural and farm-based. Also known as a subsistence economy, a traditional economy is defined by bartering and trading.