ECON 101 2Midtermreview

Casual restaurants use first come first served to

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: people who get the resource are those who are willing to pay the market price. Most of the scarce resources that you supply get allocated by market price. You sell your labour services in a market, and you buy most of what you consume in markets. For most goods and services, the market turns out to do a good job. Command Command system allocates resources by the order (command) of someone in authority. For example, if you have a job, most likely someone tells you what to do. Your labour time is allocated to specific tasks by command. A command system works well in organizations with clear lines of authority but badly in an entire economy Majority Rule Majority rule allocates resources in the way the majority of voters choose. Societies use majority...
View Full Document

Ask a homework question - tutors are online