Question

How does the US economic system differ from a command economic system, and a traditional economic system?

Answer 1

The state chooses in a command economy which products and services to generate, the process of manufacturing and distribution, and the prices of products and services. It's the main planner, therefore. Because in a command economy the state sets and regulates all elements of company, there is no competition. It is prevalent to have monopolies owned by the state. These may include financial services, utilities, or even transportation businesses.

To meet these requirements, a shadow or black economy may grow. The black economy violates the laws and regulations of a country due to the illegal conduct of financial operations and the members prevent taxes. A shadow economy occurs when transactions are made illegally by governments or by making a good or service inexpensive. This economy is trying to get around the constraints of government.

Today, North Korea, Iran, Libya, and Cuba are examples of command economies. Before turning to a mixed economy with communist and capitalist values, China was a command economy.

It is said that the United States has a mixed economy because both private companies and government play significant roles. Indeed, some of American economic history's most enduring discussions concentrate on the comparative positions of the government and private industries.
The free enterprise system in the United States emphasizes personal ownership. Private enterprises produce most goods and services, and nearly two-thirds of the total economic output of the nation goes to individuals for personal use (the remaining one-third is purchased by government and business). In reality, the role of the customer is so great that sometimes the country is described as having a "consumer economy."