Economic issues
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- GET YOU'RE $2 NEWSPAPERS HERE!!
- This is an example of a Market economy its similar to a Mixed economy because you can sell what you want but the Gov has no say in the economy.
- now Borg this is an example of a Command economy. The Government has complete control. The Gov has assigned this person there role in the economy and how much they will sell it for.
- I got assigned my job today. I will be making and selling bread for $3.
- WOW! I didn't know there where so many types of Economy. thank you human for teaching me!
- Well Borg we are not quite done yet there is still a few things you should know.
- Whats That?
- Scarcity is when a lot of people want a resource but there is not enough of it for everybody.
- in order to have a good economy you need to understand Scarcity.
- opportunity cost?
- OH, I get it now!
- you also need to understand opportunity cost
- if you can eat either an apple or an orange, and you pick the orange. this choice costs you the opportunity of eating the apple.
- Wow!! thank you human, I think I'm ready to start my own economy!!
- No problem Borg! come back if you have anymore questions about Economy.
- Annnndd Finally you need to understand incentives. If you have to clean your room but you really don't want to somebody might say they will give you $10 dollars to do it. with the promise of $10 you are much more likely to clean your room. The $10 is the incentive.
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