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.
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.
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.