Economics 1021A/B Study Guide - Midterm Guide: Avoidance Speech, Not Fair, Economic Surplus

• School: Western University
• Department: Economics
• Course: Economics 1021A/B
• Professor: Brendan Murphy

Document Summary

Market price: when a market allocates a scarce resource, the people who get the resource are those who are willing to pay the market price. Command system: allocates resources by the order (command) of someone in authority. Example: if you have a job, most likely someone tells you what to do. Your labour time is allocated to specific tasks by command. Majority rule: allocates resources in the way the majority of voters choose. Contest: a contest allocates resources to a winner (or group of winners) First-come, first-served: allocates resources to those who are first in line. Lottery: allocate resources to those with the winning number, draw the lucky cards, or come up lucky on other gaming system. Personal characteristics: allocate resources to those with the right characteristics. Example: people choose marriage partners on the basis of personal characteristics. Force: force plays a role in allocating resources. Example: war has played an enormous role historically in allocating resources.