Which type of economy did hunter-gatherers and early farming societies have?

• A. Mixed economy
• B. Market economy
• C. Traditional economy
• D. Command economy

Answer: (C)

Verified step by step guidance

1. Understand the characteristics of different types of economies: Market economy relies on supply and demand with minimal government intervention; Command economy is centrally planned by the government; Mixed economy combines elements of both market and command economies; Traditional economy is based on customs, traditions, and subsistence activities.
2. Recall that hunter-gatherer and early farming societies primarily depended on customs, traditions, and bartering rather than formal markets or government planning.
3. Recognize that these societies produced goods mainly for their own use and followed established cultural practices for economic decisions.
4. Identify that this description matches the definition of a Traditional economy, where economic roles and production methods are passed down through generations.
5. Conclude that the correct classification for hunter-gatherers and early farming societies is a Traditional economy.