ECON 1000 Study Guide - Final Guide: Internal Revenue Service, Oligopoly, Financial Accounting Standards Board

• School: York University
• Department: Economics
• Course: ECON 1000
• Professor: Gordana Colby

Document Summary

People who get the resource are willing to pay market price. Most scarce resource you supply get allocated by market price. You sell labour services in a market. Allocating resources by the order of someone in authority. Ex. someone telling you what to do at your job (labour time allocated to specific tasks by command) Works well in organizations w/ clear lines of authority. Works well when decision affects lots of people (self-interest is suppressed) Sometimes the majority pursues self-interest, resulting in a shortcoming. Works well when efforts of players are hard to monitor/reward directly. Ex. casual restaurant seating, supermarket check-out lines. Works well when resources can be served one at a time in sequence. People must be in agreement about use/implementation. Works well for small groups w/ common goals/ideals. Work well when there"s no effective way to distinguish among potential users. Sometimes used unacceptably (ex. racism/sexism within job allocation) Ex. govt. transferring wealth from rich to poor legally.