ECON 1050 Chapter 5: Economics-1 (1) (dragged) 1

• School: University of Guelph
• Department: Economics
• Course: ECON 1050
• Professor: Eveline Adomait

Document Summary

For example, they are used to allocate landing slots at some airports and place in some marathons. Lotteries work well when there is no effective way to distinguish among potential users of a scarce resource. Personal characteristics allocate resources to those with the right characteristics. For example, people choose marriage partners on the basis of personal characteristics. But this method gets used un unacceptable ways: allocating the best jobs to white males and discriminating against minorities and women. Force plays a role in allocating resources. For example, was has played an enormous role historically in allocating resources. Theft, taking property of others without their consent, also plays a large role. But force provides an effective way of allocating resources for the state tp transfer wealth from the rich to the poor and establish the legal framework in which voluntary exchange can take place in markets. Value is what we get, price is what we pay.