Answer to Question 1
1 Traditional - primitive societies trade and barter for goods and services.
2 - Market Economy - buyers and sellers interact to determine the value of goods and services.
Price acts a communication factor. Consumers answer the three economic questions.
3 - Command or Planned economy the government makes all economic decisions, owns and
operates all business and answers all three economic questions.
4 Mixed - contains elements of two or more of the market, traditional, and planned economies.
Answer to Question 2
a
