Board 8 > Economics Question

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Would the type of economy affect the methods of production?

e.g. would your methods of production (what and how) differ depending on if you had a primarily market economy vs. a primarily command economy

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Certainly the "what" would change depending on whether you have a command or free market economy, if only because governments are woefully unequipped to determine what the public wants and how much of it should be produced.

The "how" probably changes as well because innovation isn't rewarded by a command economy, so methods of production quickly become outdated and inefficient.

...I've only taken one econ course but I think that's basically right.

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I feel as though Kenri's overthinking it. The most immediate thing that changes in a command economy is supply, since the market isn't allowed to adjust on its own, hampering growth.

...although I've only taken two Econ classes. <_<

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I feel as though Bosh and Kenri are probably both right to some degree. Generally if you change some variable in the real world, it will ripple around and have innumerable lesser changes, and something like type of economy would be a pretty sizable change I'd think.

...although I've only taken zero Econ classes

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