Allocation of scarce resources
Resources are scarce , so they must be allocated somehow.
Methods are:
1) Market price
The people who are willing and able to pay that price get the resource.
2) Command
It allocates resources by the order (command) of someone in authority.
3) Majority Rule
It allocates resources in th way that a majority voters choose.
4) Contest
A contest allocates resources to a winner( or a group of winners).
5) First Come First Served
It allocates resources to those who are first in line.
6) Lottery
It allocates resources to those who pick the wining number, draw the lucky cards.
7) Personal Characteristics
People with right characteristics get the resource.
8) Force
It plays a cruicial role for both ill & good.(Theft, war, legal framework)
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