Mixed Economies

a. Compare how traditional, command, and market economies answer the economic questions of 1-what to produce, 2-how to produce, and 3-for whom to produce.

b. Explain that countries have a mixed economic system located on a continuum between pure market and pure command.

we looked at three different economic systems: Traditional  Command  Market Each system has a different approach for answering the three economic questions. 

Traditional economies are usually only found in remote, agricultural societies. Most countries tend to favor market or command principles.

The United States does not have a pure command or market economy. Instead, it is a mixture of the two.

A mixed economy combines elements of both command and market systems.

There are no pure command or market economies. To some degree, all modern economies are a “mix” of both systems and are often referred to as mixed economies.

Example - Airlines, automotive, etc.