Which economy is based mainly on agricultural products such as coffee?

Which economy is based mainly on agricultural products such as coffee?

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

Answer: (B)

Economies are often defined by the main activity that drives production. In a traditional economy, people rely on farming and other natural-resource activities, organized around customs and family needs rather than market prices. When agriculture is the central livelihood—think crops like coffee—that emphasis on farming and barter-like exchange within a community fits the traditional pattern, with little emphasis on industrial growth, innovation, or centralized planning. This stands in contrast to market economies, where decisions come from buyers and sellers responding to prices; command economies, where the government plans production; and mixed economies, which blend market signals with some level of government intervention. So describing an economy as based mainly on agricultural products such as coffee aligns with the traditional model.

Economies are often defined by the main activity that drives production. In a traditional economy, people rely on farming and other natural-resource activities, organized around customs and family needs rather than market prices. When agriculture is the central livelihood—think crops like coffee—that emphasis on farming and barter-like exchange within a community fits the traditional pattern, with little emphasis on industrial growth, innovation, or centralized planning.

This stands in contrast to market economies, where decisions come from buyers and sellers responding to prices; command economies, where the government plans production; and mixed economies, which blend market signals with some level of government intervention. So describing an economy as based mainly on agricultural products such as coffee aligns with the traditional model.