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?

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Alvaro Collier

16 December, 04:52

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?

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Dahlia Preston · Answer 1

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.