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Here we're going to provide some different definitions for different types of economies.
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Economy.
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An economy is a large set of interrelated production and consumption activities that aid in determining how scarce resources are allocated.
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In an economy, the production and consumption of goods and services are used to fulfill the needs of those living and operating within it.
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Market -based economies tend to allow goods to flow freely through the market according to supply and demand.
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Economic system.
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An economic system is a system of production, resource allocation, exchange, and distribution of goods and services in a society or a given geographic area.
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It includes the combination of the various institutions, agencies, entities, decision -making processes, and patterns of consumption that comprise the economic structure of a given community.
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Traditional economy.
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A traditional economy is a system that relies on customs, history, and time -honored beliefs.
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Societies with traditional economies depend on agriculture, fishing, hunting, gathering, or some combination of them.
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They use bartering instead of money.
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Most traditional economies operate in emerging markets and developing countries...