Answer to Question #42569 in Geography for Victoria

Question

Define the mixed economy; Traditional and Command.

Answer 1

Traditional economy is an underdeveloped economic system, which is primarily based on subsistence-based agriculture and the production of goods for own use. Economic relations and decisions are governed by tradition and customs. This system works through bartering and trading and produces very little surplus.
Command economy is the type of economy where the decisions about product supply, prices and investments are regulated by the central authority rather than market forces.
Mixed economy is an economic system that has features of market economy and planned economy: a government imposes certain boundaries on free market to achieve social balance or limit the concentration of power.