Combination, when needed I take the lane if I feel that cars will pass too close because the road is narrow or a driver may try and pass in an unsafe area like a hill or curve. Taking the lane lets them know that they must treat me like any other slow vehicle and pass only when safe. If there is more than enough room and I don't feel threatened I ride in the right wheel track. If I get a few cars behind me I will try and move over to a driveway or other opening to allow them to pass.
One thing I never do is ride close to the curb. Should some numb-nuts try and pass too close I have absolutely no where to go.