Explain How Market Economies Are Generally Better Able to Achieve

question 232

Essay

Explain how market economies are generally better able to achieve technological progress than are centrally planned economies.

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Definitions:

Constant Costs

Costs that do not change in total over a wide range of production activities or time periods.

Cost Ratios

The relationship between two elements of cost, showing how one cost compares to another, often used for analysis or efficiency assessment.

Production Possibilities Curves

A graphical representation showing the maximum number of goods or services that can be produced with limited resources.

Specialize

The process by which individuals or entities focus on producing a limited range of goods or services to gain greater efficiency and productivity.