Which type of economy is usually centered mainly on meeting people's basic needs?

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

Answer: (B)

Verified step by step guidance

1. Understand the key characteristics of each type of economy: Command, Traditional, Mixed, and Market economies.
2. Recognize that a Traditional economy is typically based on customs, traditions, and subsistence activities, focusing on meeting the basic needs of the community rather than on profit or market forces.
3. Recall that a Command economy is controlled by the government, often focusing on production goals set by the state rather than traditional needs.
4. Note that a Market economy relies on supply and demand with minimal government intervention, often emphasizing efficiency and profit.
5. Identify that a Mixed economy combines elements of both market and command economies, balancing government intervention and market forces, but does not primarily focus on basic needs as a Traditional economy does.