Question

what is a free market system, command economy, tradition based and mixed economy in an organized way. give examples as well

Answer 1

Free market system is a market form in which the market is regulated by the forces of demand and supply and the government has no influence on the market. The economy of Hong Kong is considered to be most free.

Command Economy is the one in which the control and command over the resources is with the state and is not governed by demand and supply. North Korea and former Soviet Union follow a system of command economy.

A traditional based economic system is based on history, custom and beliefs. Traditions and beliefs are kept in mind while taking economic decisions. The economies of Bhutan and Haiti follow tradition based economic system.

An economy which comprises of entities which are owned both privately and by the government is known as mixed economy. France and US are mixed economies.