Who gets scarce resources in a market economy?
A) the government
B)whoever is willing and able to pay the price
C)whoever wants them
D)Whoever the government decides gets them
What is YOUR answer?
The government does not govern a market economy.
Check this definition of a market economy -- which is basically what is in effect in the U.S.
http://www.investorwords.com/2971/market_economy.html
so then either B or C?
Who do you suppose will get this resource -- the person who will pay $10 a pound or the person who will pay only $1.00 a pound for it?
In a market economy, scarce resources are typically allocated based on the principles of supply and demand. The answer to your question would be B) whoever is willing and able to pay the price.
In a market economy, resources are considered scarce because there is a limited quantity available to meet the unlimited wants and needs of individuals. As a result, these resources must be allocated efficiently to ensure their optimal use.
The price mechanism plays a significant role in determining how resources are allocated. When a resource becomes scarce, its price typically increases. This increase in price signals to both consumers and producers that the resource is in high demand and limited supply. As a result, individuals and businesses who are willing and able to pay the higher price have the opportunity to obtain the scarce resource.
This price-driven allocation ensures that resources are allocated to those who value them the most and are willing to pay a premium for them. It also encourages efficient allocation as individuals and businesses make choices based on their preferences and budget constraints.
It is important to note that in some specific cases, the government may intervene and make decisions regarding the allocation of scarce resources, particularly when it comes to essential goods or services. However, in a general sense, the market economy relies on the principles of supply and demand to determine the distribution of scarce resources.