Answer to Question #106905 in Economics of Enterprise for Yarit gomez

Question

Read the following article: https://www.washingtonpost.com/business/2020/03/24/ford-ge-3m-ventilators-coronavirus/ and answer the following questions:

1. What is a war economy?
2. Based on the information in the article, how is what is happening an example of a war economy? Provide specific examples from the article.

Answer 1

1. War economy - type of economy when a country reorganises its industries during times of war to ensure a country’s production capacity is configured in an optimum way to aid the war effort.
2. Based on the article I can say it is timing of war economy because:

• equipment shortages left many medical professionals working with substandard protective gear, raising concerns doctors will be forced to ration care and potentially lifesaving technologies as cases surge;
• Businesses large and small have recalibrated as the public health and economic crises have raged, moving outside their lanes to produce new products or partner with other businesses to fill supply chain and product holes.