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Today I think I will go and get some milk.
I will provide you with wheat and you will clean the stables.
we have more wood than we know what to do with
we should choose to produce more wood products
This an example of how people buy/get things by trading in a traditional economy.
would you like to trade flowers for a jug of milk.
yes I would love to trade those flowers are beautiful.
This is an example of a free market economy
Thank you for the wheat
In a command economy the king and queen are the government they make all of the decisions an what to produce
we need you to make tables firewood plates cups and bowls out of wood
The young maiden goes into town to trade with the farmer at the marketplace .
In a free market people pay other by doing a chore in exchange for something
Since the king and queen are the government what they command the people to make is what they make.
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