How are traditional economies like free-market economies?
both are agricultural in nature.
both are considered subsistence economies.
both have no government regulation. both have no international trade.

The option D is correct.

Traditional economies are like free-market economies when both have no international trade.  

Further Explanation:  

Traditional Economies:

Traditional economies are those types of economies in which agricultural products are exchanged. Money is not invented at this time, the people use the barter system of exchange. In this exchange of barter system, for example, one kilogram of wheat is exchanged with same amount of rice.  

Free- market Economies:

Free – market economies are those types of economies in which all types of products are exchanged with the help of money. In this type of economies, there is little intervention of government. But there is no international trade. All the transactions have done within the boundaries of the country.  

Justification for the correct and incorrect

A.

Both are agricultural in nature: This option is incorrect.

Traditional economies include only agricultural products, but free-market economies include all types of goods. This statement is not correct.  

B.

Both are considered subsistence economies: This option is incorrect.

This statement is incorrect for both types of economies. Subsistence economies are those types of economies in which only natural resources are used. But in both types of economies, the natural resources are not used.  

C.

Both have no government regulation: This option is incorrect.

Traditional economies have full government regulation. In free-market economies, there is little government regulation. This statement is incorrect.  

D.

Both have no international trade: This option is correct.

Traditional economies usebarter system, as in this case the international trade is not possible. In free-market economies do not have international trade. This option is correct.  

Learn more:

1.Learn more about the inflation rate and economy

2.Learn more about the demand curve  

3.Learn more about Iceland economy

Answer details:

Grade: High School

Subject: Economics

Chapter: Types of economies

Keywords:traditional economies, free-market economies, agricultural, nature, subsistence economies, no government regulation, no international trade, exchanged, barter system.  

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