Question 1

If you split your dessert with your date,you are using a ________ allocation method.

Accepted Answer

Sharing equally is the allocation method that best fits the scenario of splitting the dessert with a date. Both parties are given an equal share, which is fair and considerate in a romantic setting. The other options do not apply to this situation; first-come, first-served is often used in a queue or line, contest implies competition, personal characteristics are subjective, and command would be inappropriate in a date scenario.

Question 2

Which of the following situations describing a resource allocation method most resembles the market price method?

Accepted Answer

The market price method involves setting a price for a good or service based on supply and demand in a free market. Selling lattes at Starbucks is a good example of this method.

Question 3

Honda will sell its vehicles to anyone who wants to and can buy one.Honda is using a ________ allocation method.

Accepted Answer

Honda's method of selling vehicles to anyone who can afford to buy one is an example of a market price allocation method, where goods and services are distributed based on who is willing and able to pay the price.

Question 4

Jose works at Intel.His manager tells him what work needs to be completed each month.Jose's resource,labor,is allocated with which of the following methods?

Accepted Answer

Command allocation is when a higher authority assigns tasks to a lower-level employee, which is what is happening with the manager telling Jose what work needs to be completed each month. This method is commonly used in hierarchical organizations like Intel.

Question 5

Auditors working for a large accounting firm are often away from the office.When they are in the office,they are allowed to use any desk that is available.Which method is used to allocate desks?

Accepted Answer

The method used to allocate desks in this scenario is first-come, first-served as auditors are allowed to use any desk that is available when they are in the office.

Question 6

Often people trying to withdraw money from their bank must wait in line,which reflects a ________ allocation method.

Accepted Answer

The first-come, first-served allocation method is the most appropriate choice because customers are served in the order in which they arrived in the line. This method ensures fairness and is commonly used in situations where demand exceeds supply, such as in bank queues. Market price, contest, majority rule, and command allocation methods are not applicable in this context.

Question 7

When the city of Fresno holds a referendum to determine if taxes will be raised to pay for road repairs,the city is using a ________ allocation method.

Accepted Answer

Majority rule is a decision-making process in which the option with the most votes is selected. In this case, the city of Fresno is using a referendum to allow citizens to vote on whether taxes will be raised for road repairs. The option that receives the most votes will be the one implemented.

Question 8

When you arrive at Olive Garden with your date,you hae to wait 25 minutes for a table.Olive Garden is allocating tables using which method?

Accepted Answer

First-come, first-served method is being used to allocate tables at Olive Garden. Customers are served in the same order they arrive, without any personal characteristics or market price determining the allocation of tables.

Question 9

Although Jack and Vanessa were equally qualified,Jack was promoted to manager instead of Vanessa because the president of the company thought that the other employees would not respect a female manager.The resource,the management position,was allocated in what manner?

Accepted Answer

The resource, in this case, the management position, was allocated based on personal characteristics, specifically gender bias. Both candidates were equally qualified, but the president chose Jack over Vanessa solely because of his assumption about the other employees' potential lack of respect for a female manager. This demonstrates a personal bias and discrimination rather than a fair and objective allocation of the resource.

Question 10

Which of the following situations describing a resource allocation method most resembles the force method?

Accepted Answer

The force method involves taking or forcing resources from one party and giving them to another, which is similar to Mandy's brother taking some of her soda without her consent.

Question 11

If a landlord will rent an apartment only to married couples,the landlord is using a ________ allocation method.

Accepted Answer

The landlord is using a personal characteristics allocation method by discriminating against potential tenants who are not married. This is illegal under fair housing laws in most countries. Majority rule, market price, contest, and command allocation methods are not relevant or applicable in this situation.

Question 12

Lattes at Starbucks are allocated to individuals in society through what type of method?

Accepted Answer

Lattes at Starbucks are allocated through market price, meaning that individuals must pay for the lattes according to the price set by Starbucks. This allocation method is based on the principle of supply and demand, where the higher the demand for lattes, the higher the price will be set by Starbucks.

Question 13

Canned milk was only rationed to babies and small children during World War II.This rationing was an example of allocation by

Accepted Answer

The rationing of canned milk to babies and small children during World War II based on their age and needs is an example of allocation by personal characteristics, as it targets a specific group based on inherent traits.

Question 14

Wal-Mart has a limited number of "Black Friday" (the day-after Thanksgiving Day)special items on sale at prices well below their typical price.Wal-Mart opens at 10 PM on Thanksgiving.Wal-Mart is using a ________ allocation method for these items.

Accepted Answer

First-come, first-served allocation method is commonly used for limited items offered at a discounted price, such as Black Friday sales. It is generally the most fair and transparent method, as it provides equal opportunity for everyone who arrives early to purchase the item.

Question 15

University of Colorado reserves 5,000 free tickets to each home football game for students.Students must stand in line to receive their ticket.Football tickets are allocated through which method?

Accepted Answer

The method used to allocate the football tickets is first-come, first-served, meaning that students receive tickets in the order they arrive in line.

Question 16

Mandy saved her allowance to buy a 12 pack of cream soda.When Mandy's brother saw the soda,he took four.Sodas were allocated between Mandy and her brother through

Accepted Answer

Mandy's brother took the sodas without her consent, which is an example of allocation through force.

Question 17

The chair of the Department of Economics at Colorado State University decided that office space is for tenured faculty and that graduate students are required to share cubicles.What method is used to allocate office space?

Accepted Answer

The method used to allocate office space is a command method where the chair of the department has the authority to decide who gets allocated what type of space.

Question 18

Allocating resources by the order of someone in authority is a ________ allocation method.

Accepted Answer

Command allocation method involves someone in authority allocating resources according to their own discretion, without any input or influence from others. This method is commonly used in command economies, where the government or a central authority controls the distribution of resources.

Question 19

Seventy percent of Austin's chess club wanted to purchase new chess sets and thirty percent did not.The club purchased the sets.Which method of allocation best describes the choice to purchase the sets?

Accepted Answer

The choice to purchase the sets was made based on a majority rule, as 70% of the club wanted to purchase the sets.

Question 20

The resource allocation method used for the online auctions on eBay is

Accepted Answer

The resource allocation method used for the online auctions on eBay is market price. This means that the item is sold to the highest bidder, and the price paid is the market price that has been determined by the bidders. This method ensures that the item is sold at the optimal price, and the seller gets the highest possible price for their item. It also ensures that the item goes to the bidder who values it the most.

Quiz 6: Efficiency and Fairness of Markets