00:01
Scarcity is a concept that we see across all types of economies.
00:04
And we know this because resources are limited.
00:07
There's always going to be some sort of trade -off that has to result because of scarcity and limited resources.
00:13
And in command economies, as opposed to a market economy, let's first address a market economy.
00:19
What we tend to see in market economies as they relate to scarcity is that resources are efficiently allocated, and they're efficiently allocated because of the pursuance of self -interest of all of these individual actors, firms and actual individuals and households, right? we make these decisions to pursue our own self -interest.
00:38
And as a result, all of these resources are efficiently allocated within the market so that we each can get what we are searching for.
00:45
However, in a command economy, what we see is that instead of these individuals having this freedom to pursue their self -interest, we see the government making all of these decisions.
00:55
And as a result, it tends to be very inefficient when it comes to this allocation of research...