Which of the following is most likely to be the most efficient method of allocation of a scarce resource?
A)A first-come,first-served policy
B)Doling out coupons with the right to purchase a good
C)Conducting a lottery for the right to purchase a good
D)A competitive exchange

Question

Quizplus · Accepted Answer

A competitive exchange allows individuals to reveal their willingness to pay and compete for the resource, leading to efficient allocation as the resource goes to those who value it the most. The other options do not necessarily allocate the resource to those who value it the most and could lead to inefficiencies.

Which of the Following Is Most Likely to Be the Most