If the government takes over the distribution of some scarce good in a time of a natural disaster and provides the good at no charge to users, what must also be done?
A) Because we live in a democracy, the government must use majority rule as the rationing mechanism.
B) The government must produce the good itself.
C) Nothing.
D) Some rationing mechanism must be set up to determine who gets the good.
E) Everyone hurt in the natural disaster must get one of the goods.

Question

Quizplus · Accepted Answer

Since the good is scarce, some rationing mechanism must be set up to determine who gets the good. This ensures fairness and avoids hoarding by a few individuals. The government may use a variety of rationing mechanisms such as first-come-first-served, lottery, priority for certain groups like the elderly or the medically vulnerable, etc.

If the Government Takes Over the Distribution of Some Scarce