Describe the alternative methods of allocating scarce resources
What will be an ideal response?
Resources can be allocated using:
• Market price: People who are willing and able to pay the price get the resource.
• Command: Someone in command decides who gets the resource.
• Majority rule: The majority vote decides how resources are allocated.
• Contest: Winners receive the resource.
• First-come, first-served: People first in line get the resource.
• Lottery: Randomly selected winners receive the resource.
• Personal characteristics: People with the "right" characteristics get the resource.
• Force: The stronger person or group gets the resource.
You might also like to view...
Which of the following statements is TRUE when comparing monopsony and competitive labor markets?
A) The monopsony hires more workers but pays a lower wage. B) The monopsony hires more workers at a higher wage. C) The monopsonist's wage is lower and quantity of labor higher than would prevail under competition. D) The monopsonist's wage and quantity of labor are lower than would prevail under perfect competition.
To construct GDP, exports:
a. and imports must be subtracted. b. and imports must be included. c. must be included and imports must be ignored. d. must be included and imports must be subtracted.