In most markets scarce goods or services are rationed among competing users,and ______ perform that task.

Question

Quizplus · Accepted Answer

Monetary prices are the most common way of rationing scarce goods or services among competing users in a market economy. Prices help to allocate resources efficiently by signaling the scarcity of goods or services and encouraging consumers to make trade-offs when deciding what to buy. In a competitive market, prices are set by the forces of supply and demand and reflect the marginal cost and marginal benefit of consuming an additional unit of a good or service. Non-monetary prices, such as queuing or waiting lists, may also be used to ration scarce goods or services, but they are less efficient and may result in consumer dissatisfaction. Government and private organizations may play a role in the distribution of scarce goods or services, but they usually rely on market prices to guide their decisions.

In Most Markets Scarce Goods or Services Are Rationed Among