Allocating Products with Long Lines, Using a First-Come, First-Served System

question 100

Multiple Choice

Allocating products with long lines, using a first-come, first-served system, is:

• A) the only way scarce goods can be allocated.
• B) necessary when waiting is a costless exercise.
• C) efficient, since people who are willing to wait the longest get the products.
• D) inefficient, because waiting wastes time.

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Definitions:

Liabilities

Financial obligations or debts that a company owes to others, which must be settled over time through the transfer of economic benefits including money, goods, or services.

Distorting Tax

A tax that alters the economic behavior of individuals and businesses from what they would have chosen in the absence of the tax.

Economic Welfare

The overall well-being of individuals and societies, often assessed by factors such as wealth, health, and happiness.

Benefits-Received Principle

The concept that those who benefit from public goods and services should bear the costs of providing them, in proportion to the benefit received.