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I'm not quite sure what you're missing here. Are you making sure to slap down floors between each level?
Yes. You must place floors to build anything above them, as well as to allow Gnomes to walk in that area.
As for trading, it's a Barter System. There is no currency, but the items you produce, be it the simple resources from farming, woodcutting, or mining, or the more complex products like furniture, statues, or knick-knacks, they all have value.
Keep in mind, items you craft have much more value than raw resources usually.