ECONOMICS (CBSE/UGC NET)

ECONOMICS

MARKETS AND PRICES

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
What is it called when the government uses some tool other than money to allocate resources?
A
Supply management
B
Rationing
C
Disequilibrium
D
Resource Allocation
Explanation: 

Detailed explanation-1: -The government can pursue two main types of rationing in economics to tackle crises: non-price rationing and price rationing.

Detailed explanation-2: -rationing, government policy consisting of the planned and restrictive allocation of scarce resources and consumer goods, usually practiced during times of war, famine, or some other national emergency.

Detailed explanation-3: -There are two basic types of non-price rationing, although actual practice often involves some mixture of both. These are queue rationing, and allocation schemes.

Detailed explanation-4: -One of the most common is first-come-first-served. One example of this rationing device occurs when tickets for a popular band go on sale, and the tickets are sold to those who are first in line (at a real or virtual box office). Another commonly used rationing device is brute force.

There is 1 question to complete.