What are the major differences between a traditional economy, a command economy, and market economy?

Answer 1

Traditional:
old or primitive ways to respond to the economizing problem
Planned or command:
The Central Authorities decide what to produce.
Market system or capitalism:
Market prices guide production decisions.
Mixed System:
Certain segments of the economy are dominated by the Government.
Panama is like the majority of the world nations.it applies mixed economy.

Answer 2

Santa is correct. All societies deal with scarcity and must answer the three fundamental economic questions: the what , how, and for who questions. A command economy uses central planning and production directives, a traditional economy uses long standing cultural traditions based upon primitive thoughts or religion, while a market based economy is capitalism with the winds of demand and supply and the rational functioning of price determining what to produce, etc. A mixed economy combines the above elements and has a role for the market, with government , with bits of tradition. We still have transactions with tradition employed. When you go to a restaurant and the meal and service are good, we are not required by law to tip, we do this based upon our tradition and the traditional amount of 15-20%.

Answer 3

Think of traditional as agrarian or resource based, basically back in the early days of whatever country you are talking about. A command economy has the mechanism to distribute wealth equally, and the political system is often established under than premise, but I don't believe it actually happens that way. It's pretty hard to deny the more productive people higher incomes. And equally difficult to pry the assets out of the hands of the truly wealthy. They generally bribe or corrupt the officials of a command economy to keep and accumulate more wealth. So, I would say only one in principle, and not even that one in practice.