Question 1

Canned milk was only rationed to babies and small children during World War II.This rationing was an example of allocation by
A)market price.
B)first-come,first-served.
C)sharing equally.
D)force.
E)personal characteristics.

Accepted Answer

The rationing of canned milk to babies and small children during World War II based on their age and needs is an example of allocation by personal characteristics, as it targets a specific group based on inherent traits.

Question 2

Allocating resources by the order of someone in authority is a ________ allocation method.
A)first-come,first-served
B)market price
C)contest
D)majority rule
E)command

Accepted Answer

The allocation method of allocating resources by the order of someone in authority is known as a command allocation method. In this method, the authority decides who gets access to the resources, and in what quantity. This can lead to unequal distribution and favoritism, but it can also be useful in situations where quick decision-making is required and where a centralized authority can effectively manage the allocation of resources. Hence, option E is the best choice.

Question 3

Seventy percent of Austin's chess club wanted to purchase new chess sets and thirty percent did not.The club purchased the sets.Which method of allocation best describes the choice to purchase the sets?
A)force
B)sharing equally
C)command
D)majority rule
E)lottery

Accepted Answer

Majority rule was used as a decision-making method to purchase the new chess sets. 70% of the club members voted in favor of the purchase, which is a majority and therefore the decision was made to proceed with the purchase.

Question 4

Although Jack and Vanessa were equally qualified,Jack was promoted to manager instead of Vanessa because the president of the company thought that the other employees would not respect a female manager.The resource,the management position,was allocated in what manner?
A)sharing equally
B)contest
C)personal characteristics
D)command
E)lottery

Accepted Answer

The allocation of the management position was based on personal characteristics, in this case gender bias, as the president believed that the other employees would not respect a female manager. This shows that the decision was not made on a fair or objective basis, and goes against the principle of equal opportunity for all qualified candidates.

Question 5

Mandy saved her allowance to buy a 12 pack of cream soda.When Mandy's brother saw the soda,he took four.Sodas were allocated between Mandy and her brother through
A)force.
B)majority rule.
C)first-come,first-served.
D)sharing equally.
E)personal characteristics.

Accepted Answer

Mandy's brother took the sodas without her consent, which is an example of allocation through force.

Question 6

Which of the following situations describing a resource allocation method most resembles the force method?
A)Seventy percent of Austin's chess club wanted to purchase new chess sets and thirty percent did not.The club purchased the sets.
B)Lattes are sold at Starbucks.
C)Food from the Weld County Food Bank is distributed to families in need.
D)Mandy saved her allowance to buy a 12 pack of cream soda.When Mandy's brother saw the soda,he took four.
E)Jose works at Intel.His manager tells him what work needs to be completed each month.

Accepted Answer

The force method involves using power or force to allocate resources. In this situation, Mandy's brother used force to take some of the cream soda that Mandy had saved for herself, similar to how a more powerful entity would use force to allocate resources in the force method.

Question 7

If you split your dessert with your date,you are using a ________ allocation method.
A)first-come,first-served
B)sharing equally
C)contest
D)personal characteristics
E)command

Accepted Answer

When you split your dessert equally with your date, you are using a sharing equally allocation method.

Question 8

Which of the following situations describing a resource allocation method most resembles the market price method?
A)Food from the Weld County Food Bank is distributed to families in need.
B)Lattes are sold at Starbucks.
C)Jose works at Intel.His manager tells him what work needs to be completed each month.
D)Matt's mother had the rule that whoever cuts the cake chooses their slice last.
E)Seventy percent of Austin's chess club wanted to purchase new chess sets and thirty percent did not.The club purchased the sets.

Accepted Answer

The market price method involves the price of a good or service being determined by supply and demand in a free market. In this situation, lattes being sold at Starbucks is most similar to market price because the price is determined by the demand for the product and the cost of producing it.

Question 9

When you arrive at Olive Garden with your date,you have to wait 25 minutes for a table.Olive Garden is allocating tables using which method?
A)market price
B)first-come,first-served
C)command
D)personal characteristics
E)sharing equally

Accepted Answer

Olive Garden is allocating tables based on a first-come, first-served method, meaning whoever arrives at the restaurant first is being seated first, regardless of personal characteristics or market price.

Question 10

Auditors working for a large accounting firm are often away from the office.When they are in the office,they are allowed to use any desk that is available.Which method is used to allocate desks?
A)lottery
B)first-come,first-served
C)command
D)contest
E)sharing equally

Accepted Answer

The method used to allocate desks is first-come, first-served as auditors are allowed to use any desk that is available when they are in the office. This method is efficient and practical for a large organization where employees are frequently in and out of the office. Lottery, command, contest, and sharing equally methods are not applicable in this scenario.

Question 11

University of Colorado reserves 5,000 free tickets to each home football game for students.Students must stand in line to receive their ticket.Football tickets are allocated through which method?
A)market price
B)sharing equally
C)personal characteristics
D)first-come,first-served
E)force

Accepted Answer

The allocation method used for the football tickets is first-come, first-served. Students must stand in line to receive their ticket, and the first 5,000 in line will receive a ticket. This allocation method prioritizes the students who are most motivated to attend the game, rather than distributing tickets based on personal characteristics or market price.

Question 12

The resource allocation method used for the online auctions on eBay is
A)market price.
B)lottery.
C)contest.
D)first-come,first-served.
E)sharing equally.

Accepted Answer

eBay uses a market price for their online auctions. This means that the price is determined by the market demand for the product, as bids are placed and buyers compete with each other to win the auction. This method ensures that the item is allocated to the buyer who values it the most and is willing to pay the highest price for it.

Question 13

Lattes at Starbucks are allocated to individuals in society through what type of method?
A)lottery
B)contest
C)sharing equally
D)market price
E)personal characteristics

Accepted Answer

Lattes at Starbucks are allocated through a market price method. Customers must pay the current price for a latte in order to receive one.

Question 14

The chair of the Department of Economics at Colorado State University decided that office space is for tenured faculty and that graduate students are required to share cubicles.What method is used to allocate office space?
A)lottery
B)majority rule
C)command
D)first-come,first-served
E)sharing equally

Accepted Answer

The decision to allocate office space based on the chair's authority and preference for tenured faculty is an example of a command method.

Question 15

Jose works at Intel.His manager tells him what work needs to be completed each month.Jose's resource,labor,is allocated with which of the following methods?
A)command
B)majority rule
C)force
D)personal characteristics
E)lottery

Accepted Answer

In the command method, the manager has complete authority to assign tasks and allocate resources, which seems to be the case for Jose at Intel. Therefore, A) command is the best choice.

Question 16

If a landlord will rent an apartment only to married couples,the landlord is using a ________ allocation method.
A)majority rule
B)market price
C)contest
D)personal characteristics
E)command

Accepted Answer

The landlord is making a decision based on personal characteristics, specifically marital status. This is a type of discrimination and is illegal under the Fair Housing Act.

Question 17

Wal-Mart has a limited number of "Black Friday" (the day after Thanksgiving Day)special items on sale at prices well below their typical price.Wal-Mart opens at 10 PM on Thanksgiving.Wal-Mart is using a ________ allocation method for these items.
A)first-come,first-served
B)market price
C)contest
D)majority rule
E)command

Accepted Answer

Wal-Mart is using a first-come, first-served allocation method for these items as they are limited in number and offered at a discounted price, indicating that they will be sold quickly. Customers who arrive early will have a better chance of purchasing these items before they run out of stock.

Question 18

Honda will sell its vehicles to anyone who wants to and can buy one.Honda is using a ________ allocation method.
A)first-come,first-served
B)market price
C)contest
D)majority rule
E)command

Accepted Answer

Honda's method of selling vehicles to anyone who can afford to buy one is an example of a market price allocation method, where goods and services are distributed based on who is willing and able to pay the price.

Question 19

When the city of Fresno holds a referendum to determine if taxes will be raised to pay for road repairs,the city is using a ________ allocation method.
A)majority rule
B)market price
C)contest
D)personal characteristics
E)command

Accepted Answer

The city of Fresno is using a majority rule allocation method because the decision to raise taxes for road repairs will be determined by the majority vote of the citizens through a referendum.

Question 20

Often people trying to withdraw money from their bank must wait in line,which reflects a ________ allocation method.
A)first-come,first-served
B)market price
C)contest
D)majority rule
E)command

Accepted Answer

First-come, first-served is the most appropriate allocation method in this situation as individuals are being served based on the order in which they arrived at the bank.

Quiz 6: Efficiency and Fairness of Markets

Canned milk was only rationed to babies and small children during World War II.This rationing was an example of allocation by

Allocating resources by the order of someone in authority is a ________ allocation method.

Seventy percent of Austin's chess club wanted to purchase new chess sets and thirty percent did not.The club purchased the sets.Which method of allocation best describes the choice to purchase the sets?

Although Jack and Vanessa were equally qualified,Jack was promoted to manager instead of Vanessa because the president of the company thought that the other employees would not respect a female manager.The resource,the management position,was allocated in what manner?

Mandy saved her allowance to buy a 12 pack of cream soda.When Mandy's brother saw the soda,he took four.Sodas were allocated between Mandy and her brother through

Which of the following situations describing a resource allocation method most resembles the force method?

If you split your dessert with your date,you are using a ________ allocation method.

Which of the following situations describing a resource allocation method most resembles the market price method?

When you arrive at Olive Garden with your date,you have to wait 25 minutes for a table.Olive Garden is allocating tables using which method?

Auditors working for a large accounting firm are often away from the office.When they are in the office,they are allowed to use any desk that is available.Which method is used to allocate desks?

University of Colorado reserves 5,000 free tickets to each home football game for students.Students must stand in line to receive their ticket.Football tickets are allocated through which method?

The resource allocation method used for the online auctions on eBay is

Lattes at Starbucks are allocated to individuals in society through what type of method?

The chair of the Department of Economics at Colorado State University decided that office space is for tenured faculty and that graduate students are required to share cubicles.What method is used to allocate office space?

Jose works at Intel.His manager tells him what work needs to be completed each month.Jose's resource,labor,is allocated with which of the following methods?

If a landlord will rent an apartment only to married couples,the landlord is using a ________ allocation method.

Wal-Mart has a limited number of "Black Friday" (the day after Thanksgiving Day) special items on sale at prices well below their typical price.Wal-Mart opens at 10 PM on Thanksgiving.Wal-Mart is using a ________ allocation method for these items.

Honda will sell its vehicles to anyone who wants to and can buy one.Honda is using a ________ allocation method.

When the city of Fresno holds a referendum to determine if taxes will be raised to pay for road repairs,the city is using a ________ allocation method.

Often people trying to withdraw money from their bank must wait in line,which reflects a ________ allocation method.