This preview shows page 1. Sign up to view the full content.
Unformatted text preview: changes when incomes changes, ceterus paribus %change in QD/ % change income ALLOCATION METHODS AND EFFICIENCY What method is best? Is it efficient? Is it fair? Scarce resources might be allocated by: COMMAND, MARKET PRICE, majority rule, contest, first come first served, sharing equally, lottery, personal characteristics, force Command system allocates resources by the order (command) of someone in authority ex.) if you have a job, most likely someone tells you what to do. Your labor time is allocated to specific tasks by command...
View Full Document
This note was uploaded on 09/29/2009 for the course ECON 101 taught by Professor Balaban during the Spring '07 term at UNC.
- Spring '07
- Price Elasticity