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Essay / Mixed Economic Systems - 1288
Traditional economies are somewhat outdated but allow old ways to thrive and can be the most productive economic types to use each resource to its full potential. Planned or command economies give the central government complete control. Despite the restrictions, this type of economy generates good profits, just like mixed and market economies. Market economies are the most liberal of the four in terms of control. Consumers dictate all economic decisions that businesses use to produce goods and services. Mixed economies are a mix of command and market economies and allow only some state intervention. However, the government still primarily bases its decisions on the wants and needs of consumers. All of these economic types answer the three economic questions in their own way, making them all unique in one way or another. However, they are parallel and share similar ideas on how to run an economy. Although there are many different factors that determine the success or failure of an economy, all four economic systems strive to maintain successful economies, each in their own domain.