Given that resources can be allocated by the government, the market, a random process, or on a first-come first-serve basis, which of the following statements is true?
a. The market system is not entirely fair but it creates incentives to increase supplies and improve standards of living.
b. The random process of allocation allows individuals to acquire purchasing power and enhances the value of the resources that they own.
c. Since the government system does not distinguish between those who have income and those that do not, government allocation of resources is the most efficient.
d. There will be no shortages under the first-come first-serve basis of allocation.
e. A random process of allocation is fair in the sense that everyone gains and there are no losers.
a
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a. True b. False Indicate whether the statement is true or false
Which of the following is NOT correct regarding the theories of income distribution?
A) Dealing with how income ought to be distributed is a normative issue. B) The productivity standard for the distribution of income is stated "to each according to what they produce." C) The egalitarian principle of income distribution is "to each exactly the same." D) Dealing with how income should be distributed is a positive economic issue.