In most societies, dollar price acts as the main rationing device. If dollar price weren't the main rationing device, would there still be a need for some rationing device to take its place?
A)No, because with dollar price there would be no scarcity, although shortages would still exist.
B)Yes, because there is a need for a rationing device as long as scarcity exists.
C)Yes, because there is a need for a rationing device as long as the world's population is so large.
D)No, because dollar price creates scarcity and without money price scarcity wouldn't exist.

Question

Quizplus · Accepted Answer

Scarcity is a fundamental economic problem that exists because resources are limited while human wants and needs are infinite. Therefore, as long as there is scarcity, there will be a need for some rationing device to allocate scarce resources among different uses. Even if dollar price were not the main rationing device, some other mechanism would still be necessary to allocate resources efficiently.

In Most Societies, Dollar Price Acts as the Main Rationing