ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The main theme here is that no central planning is needed to make a pencil, or any other object. The knowledge lies with more than one person, government or company. Read’s advice is as follows: “The lesson I have to teach is this: Leave all creative energies uninhibited.

Detailed explanation-2: -It is thought that the etymology of pencil was originally named from the place where the shape of the Writing which wrapped the stick of the lead of the metal of the initial pencil with the hair was similar to the tail in the meaning of Latin “pensilum (tail)”, and settled. It was called lead pencil (red pencil).

Detailed explanation-3: -It was the magic of the price system: the impersonal operation of prices that brought them together and got them to cooperate, to make this pencil, so you could have it for a trifling sum. That is why the operation of the free market is so essential.

Detailed explanation-4: -The miracle involved in the making of pencils is that the efforts and knowledge of millions of people are brought together automatically, without force or a “master planner, ” in exactly the right way needed to produce pencils.