Which of the Following Societies Is the Most Likely to Have

question 25

Multiple Choice

Which of the following societies is the most likely to have a traditional economy?

• A) United States
• B) the Inuit (native people of Northern Canada)
• C) Cuba under Castro's rule
• D) modern-day Hong Kong

---

Definitions:

Substitution Effect

The economic principle that as the price of a good or service rises, consumers will replace it with cheaper alternatives, affecting the demand for goods.

Normal Good

A Normal Good is a type of good for which demand increases as the income of consumers increases and decreases when consumer income decreases, all else being equal.

Indifference Curve

A curve showing the different combinations of two products that yield the same satisfaction or utility to a consumer.