When Scarce Resources Can Serve Only One User at a Time

question 194

Multiple Choice

When scarce resources can serve only one user at a time in sequence, which method works well for allocating the scarce resources?

• A) first come, first served
• B) lottery
• C) contest
• D) command system

---

Definitions:

Total Assets

The sum of all monetary values of everything a company owns, including cash, investments, property, and other resources, reflected on its balance sheet.

Reserve Requirements

The fraction of deposits that banks are required by law to keep on hand or with the central bank as a safeguard against bank runs.

Money Multiplier

A factor that quantifies the amount of money that banks generate with each unit of reserves.

Reserve Ratio

The fraction of deposits that banks are required to keep on hand as reserves, aimed at ensuring liquidity and controlling the money supply.