The condition in an economy that makes a "rationing device" a necessity is:
A) the economy is organized around free markets.
B) the economy is centrally planned by the government.
C) scarcity exists.
D) there are fewer types of goods than there are people in the economy.

Question

Quizplus · Accepted Answer

A rationing device is necessary when there is not enough of a good or service to satisfy the demands of everyone who wants it. This situation arises because of scarcity, which means that resources are limited relative to human wants and needs. Therefore, choice C is the best answer as it implies the existence of scarcity, which is necessary for the need of rationing device.

The Condition in an Economy That Makes a "Rationing Device