Provide an example of each allocation method that illustrates when it works badly
What will be an ideal response?
Below are examples of when each allocation scheme would work poorly:
• Market price: Deciding court cases on the basis of who will pay the most for the decision.
• Command: Running an economy.
• Majority rule: Deciding how many acres of wheat to plant.
• Contest: Allocating food in a winner-take-all contest.
• First-come, first-served: Admitting students to college based on who applied first.
• Lottery: Assigning grades based on random chance.
• Personal characteristics: Renting only to married couples.
• Force: Stealing by threat of physical harm.
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Based on the graphic for perfect competition versus monopoly, which is the highest number?
a. PM
b. MC
c. PPC
d. ATC
The money supply (M1) includes currency held by the public plus
A. Balances in most savings accounts and money market mutual funds. B. Transactions accounts plus money market mutual funds. C. Currency held by the Fed and Treasury and transactions accounts. D. Transactions accounts plus travelers checks.