In a world of scarcity, there has to be some way to ration the available resources. According to economists, the most efficient use of available resources occurs when rationing occurs via
A) queuing.
B) lotteries.
C) political power.
D) the price system.

Question

Quizplus · Accepted Answer

The price system is the most efficient way to ration resources in a world of scarcity. This is because the price of a good is determined by supply and demand, which reflects the scarcity of the good. As supply decreases, the price increases, which incentivizes consumers to conserve the resource and producers to increase production. This creates a market equilibrium where resources are allocated to their most valuable uses. Queuing and lotteries are inefficient because they do not take into account the value of the good to the consumer or the cost of production. Political power is also prone to corruption and may not allocate resources efficiently.

In a World of Scarcity, There Has to Be Some