Amadeo 1

• A mixed economy is a combination of market, command, and traditional economies.
• The United States is a mixed economy because its constitution protects the requirements of a market economy.
• However the constitution also encourages the government to help the people and it helps bring about the command part of the economy.

Amadeo 1-2

• A mixed economy seeks to mix all the abilities of a market, command, and traditional economies in order to present little disadvantages.
• The mixed economy has advantages from market economies such as: private property, pricing and individual self-interest.
• Advantages from the command economy are a centrally placed government that helps to regulate most of the commerce and other forms of trading. 

Amadeo 2

•  The U.S. has 6 characteristics of a market economy and they are ownership of private property, everyone is free to live, work and buy and sell whatever they want, buying and selling is driven by self-interest, competition is protected by the law, prices allowed to float freely, and the only thing the government has to do is protect and regulate the economy.

Amadeo 2

• In the command aspect of the mixed economy, there is no central economic plan, but there is a federal budget. The resources are partially allocated through the use of taxes. Government spending outlines the priorities for the country. The government owns a monopoly on things like NASA and the interstates and highways.

Amadeo  2-3

• While the United States is moving away from a traditional economy, there are still economies that are guided by the traditional system.
• A traditional economy is based on agriculture, hunting and fishing which the U.S. has moved far from in most aspects.

Amadeo  3

• Most of the advantages of a mixed economy is from the market economy which is the most free of the economies.
• There is efficient allocation of goods and services and it rewards the most efficient producers with more money which is good for everyone.

Amadeo  3

• A mixed economy minimizes the disadvantages of a market economy, which is just fantastic in most aspects.