In situations in which prices cannot be used to signal relative scarcities of goods, which of the following can serve as a rationing mechanism?
A) queuing
B) political power
C) random assignment
D) all of the above

Question

Quizplus · Accepted Answer

In situations where prices cannot be used, queuing (where people wait in line for a predetermined amount of the good), political power (where those with more power or influence are given priority access to the good), and random assignment (where access to the good is determined by chance) can all serve as rationing mechanisms. Each of these methods has its own drawbacks and limitations, but in the absence of price signals, they can help allocate scarce goods or resources.

In Situations in Which Prices Cannot Be Used to Signal