Economic analysis of I pencils Essay.
The articles show that making a pencil, which is a little thing required creativities, working as a team o make sure all the process of creative know-how is complete and efficient. The article’seconomic perspective shows how differentactivatesintertwined with a pencil to produce quality products. The author used a pencil as an example because the process of manufacturing apencil seems to be simple, but it is not as it appears to be done by one person.The article explains the journey and process of pencil making, which is assertive, and no single person can perform the process alone, which represents different capitalism and economic activities involved.
The pencil making process involves many people with different knowledge, experience, and various areas included in the process. The whole process of pencil making represents the idea of how free-market economics works as a collaboration ofdifferent individuals carrying out their daily activities without government regulations. The Leonard E. Readarticle illustrates the existence of the principle of spontaneous order in different efforts by people and various events involved in the manufacturing process to maximize the economic benefits to the people by providing quality pencil products at the lowest cost. Therefore, the production of each product, whethersimple or complex, should be well planned to incorporate different activities, resources, and knowledge from various individuals to provide adequate know-howand to achieve each element of the products.
The article shows that many things like a pencil taken for granted as if they are valueless or comes easily. Still, economically these things require complex processes during the making to make sure they meet the needs of the customers. Individuals should learn to take care of every product because they require a lot of resources to produce and obtain such products and not take the simple products for granted because, for products to reach a consumption status, they undergo a complex and economically high process. The economic systems should be sufficient for all activates of production to enhance free markets of different products. The economic policies of operations for any product not be taken for granted ended because people cannot live without these products.
The article explains the economy as it shows and explains the concept of free-market economics and capitalism based on the writings of Adam Smith’s.The economic activity of making a pencil is the free market economies considered as the best economical way to run the market according to the articles to be able to deal with stock market issues when they arise.I pencilexample is crucial as it provides adequate information about how capitalism in the production process using an invisible hand in the economizing action. The hidden activities that included in the creation of a pencil represent the intangible capitals and economics involved in creating events used to produce different products used in everyday life.
There exists an interconnectivity of the market place due to the invisible andcountless economic and capital resources required tomake sure products remain relevant and accessible to the consumers. The economy produces different products that require hidden resources, know-how, and knowledge to meet the needs of the final consumer. The economic and principles of the free market showthat the financial and capitalist processes of the production process require more than one personnel and authority to provide different activities to effectively manage and produce quality products in the market for the customers.
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