How did our economy become???
Answers
Answer:
an economy is an interrelated system of human labor, exchange, and consumption. An economy forms naturally from aggregated human action – a spontaneous order, much like language. Individuals trade with each other to improve their standards of living. Improved standards of living are made possible when labor is more productive. Productivity is driven by specialization, technological innovation, and working capital. The only sustainable way for an economy to grow is through increased productivity.
Explanation:
An economy forms when groups of people leverage their unique skills, interests, and desires to trade with each other voluntarily. People trade because they believe it makes them better off. Historically, a form of intermediation (money) is introduced to make trade easier.
An economy forms when groups of people leverage their unique skills, interests, and desires to trade with each other voluntarily. People trade because they believe it makes them better off. Historically, a form of intermediation (money) is introduced to make trade easier.People are financially rewarded based on the value others place on their productive outputs. They tend to specialize in that which will deems them most valuable. Then they trade the portable representation of their productive value – money – for other goods and services. The total sum of these productive efforts is referred to as an economy.