#11
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Re: homework help: macroeconomics
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[ QUOTE ] It's all supply and demand. I'm an Econ major and I have never heard of "allocation mechanism," but when in doubt, the answer is always supply and demand. [/ QUOTE ] I have an MA in econ and have never heard this term in an econ class. [/ QUOTE ] I've got an MA in econ, and almost a Ph.D. in Econ, and I have heard this [img]/images/graemlins/smile.gif[/img]. I don't know exactly what your prof is talking about, but as I understand it, an allocation mechanism is a mechanism (the process? the market? something like that) that determines how the good is distributed. In other words, how is it decided who gets the goods? I'll give a few examples as far as my understanding of what the question is asking: for parking on campus (if the parking is limited) there might be a lottery for those spots. The allocation mechanism in that case is the lottery. For high demand concert tickets it might be queueing (or first-come first-served), which is the allocation mechanism in that case. My guess is your prof wants you to see that not everything is 'free market', and that there is probably a place for such procedures/markets. Shane |
#12
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Re: homework help: macroeconomics
[ QUOTE ]
I'll give a few examples as far as my understanding of what the question is asking: for parking on campus (if the parking is limited) there might be a lottery for those spots. The allocation mechanism in that case is the lottery. For high demand concert tickets it might be queueing (or first-come first-served), which is the allocation mechanism in that case. My guess is your prof wants you to see that not everything is 'free market', and that there is probably a place for such procedures/markets. Shane [/ QUOTE ] Now that you say this, I actually know what you're talking about, but I don't think I was taught it as "allocation mechanism." When I get back to my apartment tonight, I'll look in my Econ notebooks and see if I can find what they are. |
#13
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Re: homework help: macroeconomics
OH crap.
I just opened up my Econ notebook and wouldn't ya know: "Allocative Mechanisms" So I guess the first time I heard this was January 19, 2005, which was a Wednesday. I always write down the dates. So yeah, I forgot. Anyways, they are: -Market System -Brute Force -Queuing "waiting in line" -Random Selection -Tradition -Government |
#14
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Re: homework help: macroeconomics
So it's obviously... Marijuana is through Government because they all smoke weed. And babies is by Brute Force because No means Yes. Totally joking... |
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