Learning-by-doing (economics)

Learning-by-doing in economics means that a person gets better at doing something the more they practice it. It's like when you learn to ride a bike - at first, you might fall off or wobble, but as you keep riding, you get better and can do it without even thinking about it.

In economics, learning-by-doing is important because it helps people and companies become more efficient and productive. When someone has experience doing a task, they can often do it quicker and with fewer mistakes. This can save time and money for businesses, and help them make more profits.

For example, imagine a car factory. When the workers first start building a new car model, they might need to figure out the best way to put it together. But as they keep building more cars, they learn which steps are most efficient, which tools work best, and how to avoid mistakes. This knowledge helps them make the cars faster and better, which can ultimately lead to lower costs and higher profits for the company.

So, learning-by-doing is all about practice and experience, and how it can make people and companies better at what they do.