ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Both Traditional and Market Economies
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Both Market and Command Economies
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Both Traditional and Command Economies
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Traditional, Market, and Command Economies
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Detailed explanation-1: -A mixed economic system has features of both a command and a free-market system. because it is partly controlled by the government and partly based on the forces of supply and demand.
Detailed explanation-2: -A mixed economy is a blend of market and command economies. In a mixed economy some parts or sectors of the economy are left to private ownership (market) while in other sectors there is substantial government ownership or government-directed production (command).
Detailed explanation-3: -A mixed economic system is a system that combines aspects of both capitalism and socialism.
Detailed explanation-4: -A combination of free market principles of private contracting and socialist principles of state ownership or planning is common to all mixed economies.
Detailed explanation-5: -While a mixed economy combines free market with central government planning and intervention, a market economy relies purely on the free market (and the rules of supply and demand) to regulate the economy. For this reason, profit motives, incentives, and capitalism are the driving factors of the economy.