Mixed Economic Systems

In a world full of different economies, there are four economic systems that all economies can be placed into: traditional economies, market economies, centrally-planned or command economies, and mixed economies. Each of these types of economies have their own unique features as well as different roles that play their own parts. Property rights, competition, and profit are three of some of the main roles that differ in each economic system but also can parallel between the four types of economies. While some allow for limited government intervention, others put the government in the highest position of power. While one may be advanced in technologies, the other may be slow to development. One type of economy may give all deciding factors to

Like market economies, businesses make economic decisions based off of consumer demands. The only intervention the government has in this economy is that it regulates trade, ensures safety of consumers, and takes measures to protect the environment. It also makes some decisions of where some goods are distributed, but they are mainly based on consumers wants and needs. Major countries that use the mixed economy include the United States, Norway, and Sweden. Individuals have more property rights than traditional and command economies, but have less rights than market economies since the government is allowed to dictate the prices of certain places to live. Very similar to market economies, mixed economies promote competition since it allows the economy to thrive. Much like a command economy but unlike a market economy, the government can put restraints on businesses if the business seems to be a threat to the public or is making way too much money and is driving away/eliminating competition. In short, this economy type allows for many economic freedoms but in order to protect businesses and consumers alike, the government is allowed to have some intervention. Like with anything, too much of something can be a bad thing so a mixed economy strives for balance which makes it unique among the different

Traditional economies are somewhat out of date but allow for old customs to thrive and can be the most productive of the economic types for using every resource to its full potential. Centrally-planned or command economies gives the central government complete control. Despite the restrictions, this economic type has a good amount of profit, just like mixed and market economies. Market economies are the most liberal of the four in terms of control. The consumers dictate all economic decisions that business use to produce goods and services. Mixed economies are a mixture of command and market economies and only allow for some government intervention. However, the government still mainly bases its decisions off of consumer wants and needs. All of these economic types answer the three economic questions in there own ways, making them all unique in some way. Although, they do parallel off of each other and share similar ideas of how to run an economy. While there are many different factors of what makes an economy successful or a failure, all four economic systems strive for maintaining thriving economies, each in their own