Why does an economy need a rationing mechanism?
A) because of scarcity
B) because it preserves the power of the wealthy
C) because it eliminates poverty
D) All of the above are correct.

Question

Quizplus · Accepted Answer

An economy needs a rationing mechanism because of scarcity. Resources are limited and cannot satisfy all of the wants and needs of individuals, so a mechanism must be in place to allocate and distribute goods and services.

Why Does an Economy Need a Rationing Mechanism