Review (Goals, Resource Allocation Strategies, Role of Gov)

What is the function of the price mechanism in a market economy?

• allocating resources and guiding choices

• allowing governments to provide price stability

• enabling markets to operate fairly

• preventing competitors from entering a market

In a private market system certain goods and services would not be available unless the government intervened. What does this identify in a private market?

• market distribution

• market equilibrium

• market failure

• market structure

This allocation strategy allows rationing of a resource based on who can afford the price set by the market.

• price

• majority rule

• contest

• force

In this strategy, who gets what is determined by what the majority wants

• majority rule

• contest

• force

• price

In this allocation strategy the resource is distributed to the person who wins.

• contest

• price

• majority rule

• force

When resources are taken by force or threat

• force

• sharing

• lottery

• price

When a resource is distributed among all of those who need/want it

• sharing

• majority rule

• price

• first-come first-served

In this strategy, everyone who wants the resource has equal odds of receiving it.

• lottery

• sharing

• authority

• price

A person or group of people in power determine who receives what resources.

• authority

• price

• sharing

• first-come first-served

This allocation strategy allows people to receive a resource if they are the first one in line for it.

• first-come first-served

• price

• personal characteristics

• force