Which of the following is NOT one of the four main types of economic systems used by countries?

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

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the concept of economic systems. Economic systems are the methods societies use to allocate resources and distribute goods and services. The four main types commonly studied are Traditional, Command, Market, and Mixed economies.
2. Step 2: Define each of the four main economic systems: Traditional economy relies on customs and traditions; Command economy is controlled by the government; Market economy is driven by individual choices and market forces; Mixed economy combines elements of both market and command systems.
3. Step 3: Identify the term 'Subsistence economy.' This term typically refers to an economy where communities produce just enough for their own consumption, often seen as a characteristic within traditional economies rather than a separate main type.
4. Step 4: Compare the options given: Mixed economy, Command economy, and Traditional economy are all recognized main types of economic systems, while Subsistence economy is not classified as one of the four main types but rather a subset or characteristic of traditional economies.
5. Step 5: Conclude that 'Subsistence economy' is NOT one of the four main types of economic systems used by countries, based on the standard classification in microeconomics.