Minoan Civilization · World History

The Minoan economy was primarily based on the 'Palace Economy' model, which functioned through:

  1. Laissez-faire capitalism with privately owned markets and currency
  2. Centralized redistribution of goods collected by palace administrators
  3. A coin-based monetary economy using standardized gold currency
  4. A strictly nomadic system in which clans bartered goods on the move
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Correct answer: Centralized redistribution of goods collected by palace administrators

In a palace economy, the central administration collected agricultural surplus and craft goods into palace storerooms (magazines). These goods were then redistributed to the population or used for international trade.

Difficulty: Medium Question 10 of 20

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