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An economy is the large set of inter-related production and consumption activities that aid in determining how scarce resources are allocated. 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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In the modern times the way we get taxed is by having to pay money. In the Inca Empire their economy was different and they were taxed in a different way. The government told each household what work they had to do, this system was called "mita".

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In the Inca Empire's economy there were no merchants or markets like there are now. The government would distribute the goods they got from mita to everyone. They would store leftovers in the capital for big emergencies.

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Most Inca people worked on government owned farm, of course there were still people who did other things such as mining or making clothes. Some of these things went to the army. People in the army wouldn't have to pay for being in the army was their labor tax.