Wednesday, March 24, 2021

Economy no: 3

 Economy:

A command economy is a government saying "You need to build 10k cars" or you need 100mil apple, also who gets the apples.


The Government will allocate the cars and apples.


But in a Market economy

for a market economy, they make cars that look like this and trains that look like that, they find out how much the car is selling and why to make it, and competing brands to make cars.

Innovation is from a Market economy, like "Ok we are selling a car that looks the same, but is a different color", most of the world is doing a market economy.



1 comment:

  1. Innovation drives the market economy. Like keyboards for instance, look at how far its come from other typewriter, normal keyboards then wireless keyboards and now mechanical keyboards.

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