SOLVED

11) What method of resource allocation depends on willingness-to-pay and ability-to-pay? A) command B) lottery C) market price D) first-come, first-served E) force 12) At West, a restaurant in Vancouver, reservations are essential. At Cibo, a restaurant in downtown Vancouver, reservations are recommended. At Vij’s, a restaurant near the University of British Columbia, reservations are not accepted. West allocates scarce table resources by ________, Cibo allocates scarce table resources by ________, and Vij’s allocates scarce table resources by ________. A) market price; market price and force; force B) personal characteristics; personal characteristics and first-come, first-served; first-come, first-served C) a command system; a combination of a command system and first-come, first-served; first-come, first-served D) first-come, first-served; first-come, first-served; first-come, first-served E) personal characteristics; personal characteristics; first-come, first-served 13) Restaurants don’t use market price to allocate their tables because A) they would have to watch the price of a table at other restaurants to keep competitive. B) restaurants would have to advertise the price. C) the price of a table would fluctuate hourly, customer uncertainty would deter patrons, and lower demand would bring lower profit. D) they would have to continually change the supply of tables to keep the price constant. E) the price of a table would eventually fall to zero and restaurants would incur a loss. 14) Which of the following is true? A) When resources are allocated on the basis of personal characteristics, all people who are willing and able to pay the price get the resource. B) When the range of activities to be monitored is large and complex, a command system allocates resources better than a market price. C) When a market price allocates resources, some people who are willing and able to pay that price don’t get the resource. D) Force provides the state with an effective method of transferring wealth from the rich to the poor. E) When resources are allocated by force, people with the “right” characteristics get the resources. Â Â