Log out Go to App
Go to App

Learning Materials

Features

Discover

Chapter 1: Problem 21

Would there be a need for a rationing device if scarcity did not exist? Explain your answer.

Short Answer

Expert verified
No, there would not be a need for a rationing device if scarcity did not exist. The basic function of a rationing device is to manage the distribution of scarce resources. If there were unlimited resources, there would be no requirement to ration.

Step by step solution

01

Understanding Scarcity

Scarcity refers to the basic economic problem of having seemingly unlimited human wants in a world with limited resources. Because of scarcity, various economic decisions must be made to allocate resources efficiently.
02

Understanding the Rationing Device

A rationing device is a means for deciding who gets what portion of the available resources or goods. They are necessary because of the basic economic problem of scarcity. This includes price rationing, where goods are distributed to those willing to pay the price, queue rationing, where goods are distributed first-come-first-serve, and more.
03

Interdependency of Scarcity and The Rationing Device

From understanding both scarcity and the rationing device, you can infer that the need for a rationing device arises only when there is scarcity. If scarcity did not exist, meaning resources and goods were limitless, then there would be no need to decide who gets what – rationing would become unnecessary.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Give two examples for each of the following: (a) an intangible good, (b) a tangible good, \((\mathrm{c})\) a bad.

Can either scarcity or one of the effects of scarcity be found in a car dealership? Explain your answer.

Economists say that individuals make decisions at the mat gin. What does this mean?

Explain the relationship between changes in opportunity cost and changes in behavior.

If you found \(\$ 10\) bills on the sidewalk regularly, we might conclude that individuals don't try to maximize net benefits. Do you agree or disagree with this statement. Explain your answer.
See all solutions

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free