Linda owns a successful clothing store. She wants to expand her business by starting another store. But she cannot do so because the government allows a person to own only one store. Which type of economy does this scenario describe?
There are four types of economic systems. These are traditional,
command, market, and mixed economy systems. The given scenario is an
example of Mixed Economy system. Under this economic system, a business
owner can open his or her own business but is subjected to the rules and
regulations imposed by the government. Linda can open a business but
she is limited by the government's rule of only having one store.