Question

bellringer - wednesday, sept. 3rd
matthew wollerd - 11:40 am
5 points
due today
scenario:
a group of 40 high school students get on a bus to go to a dance 30 miles away. shortly after leaving, the bus finds that it is too heavy to go over a large hill, 10 students need to get off.

1. create a list of 2 - 3 different ways to decide who should get off the bus.
2. are any of the solutions fair?
3. how are resources distributed in a command economy? / do any of your solutions resemble a command economy?
4. how are resources distributed in a free market economy? / do any of your solutions resemble a free market economy?
5. what role do prices play in a free market economy (capitalism)?

Explanation:

1. Ways to decide who gets off the bus:

• Random draw: Use a lottery - style method, like drawing names from a hat. Everyone has an equal chance.
• Volunteer: Ask for volunteers. Those who are less eager to go or have other arrangements may step forward.

1. Fairness: Random draw is fair as it gives equal probability to all students. Volunteering can also be fair if students act freely without external pressure.
2. Command economy resource distribution: In a command economy, the government decides how resources are distributed. None of the above methods are like a command economy as there is no central - authority making the decision.
3. Free - market economy resource distribution: In a free - market economy, resources are distributed based on supply and demand. None of the above methods resemble a free - market economy as there is no price or market mechanism involved.
4. Role of prices in free - market economy: Prices act as signals to allocate resources. High prices indicate scarcity and encourage producers to supply more, while low prices indicate abundance. They also help consumers make choices about what to buy.

Answer:

1. Random draw, Volunteer.
2. Random draw and volunteering can be fair under certain conditions.
3. The government decides resource distribution; none of the above methods resemble a command economy.
4. Based on supply and demand; none of the above methods resemble a free - market economy.
5. Prices act as signals for resource allocation and help consumers and producers make decisions.