5. In a traditional economy, decisions are made according to customs and tradition. How are these choices mad

Question

In a traditional economy, decisions are made according to customs and tradition. How are these choices made in modern mixed economy?

Answer 1

A mixed economy is what the United States currently operates under (there are no pure free market economies in the world). A mixed economy is one that has largely a free market economy, but has some regulation which keeps it from being a purely free market one. In the US, we have regulations prohibiting monopolies from taking over an industry and driving up prices. A free market would not prohibit such things. In addition, we have some parts of a command economy, since the government controls some industries, such as the post office, which would not be controlled by the state in a pure free market. Thus, in a mixed economy, choices are generally left up to the consumer based upon his preferences and tastes.

Answer 2

customs and tradition