13 terms

How Are Scarce Resources Allocated Among People?

Section 3 CD- 1318 Mark Twain Media Publishing Company
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Economics is
the study of the ways that individuals and societies (communities) allocate their limited resources in order to better satisfy their wants.
To Allocate means
to divide among or to distribute in shares.
Resources are
the means to accomplish something.
Defining economics
Most scholars and practitioners view economics as the science of decision-making.
The methods used to allocate our scarce resources are:
Market System, Brute Force, Queuing, Random Selection, Tradition, Equal Shares, Need, Planned Systems.
MARKET SYSTEM
is the system used by the U.S.A. to distribute the allocate scarce resources by letting the buyers and sellers choose what to put in the market.
BRUTE FORCE
is another system of deciding who gets what. It's like survival of the fittest. The strongest, biggest, and,or fastest get what they want.
QUEUING (lining up)
is another method of who gets what. This is just like first come, first serve. This wouldn't work well because we would spend to much time in lines.
RANDOM SELECTION
is good in some cases and bad in others, for example some of us might get a good job that fits us perfectly and another guy might get a job that he knows nothing about.
TRADITION
only works if nothing changes, for example if my father played an instrument and likes it I would have to play it to no mater how much tallent you have or if you even like it!
EQUAL SHARES
is when everyone has the same amount of everything. This wouldn't work because if somebody dosen't like or is allergic to peanuts we end up with wasted resources.
NEED
is when you are so low you need resources really bad otherwise you go bad. The problem with this is some people cheat and lie about how bad they are.
PLANNED SYSTEM
is like Equal Shares but the government chooses. There isn't really anything wrong with this, in fact we use this method in war time.