ECON 1000 Lecture Notes - Lecture 5: Economic Surplus, Demand Curve, Marginal Cost

• School: York University
• Department: Economics
• Course: ECON 1000
• Professor: Steven Edwards

Document Summary

Economics lecture five: ch. 5 efficiency and: resource allocation methods. Market price, command, majority rule, contest, first come, Critical to those who can not afford products/services. When market allocates scarce resources, people who resourced are those willing to pay market price. Most scarce resources that you supply get allocated by market price. Sell labour services to market then buy most of what you consume in market. Command ystem works well in organizations with clear lines of authority but bad entire economy. Allocates resources in the voting of majority voters. Societies use majority rule for some of the biggest decisions. Majority rule works well when decisions affects a lot of people and self interest must be suppreseed to use resources efficiently. I. e. the oscars are a type of contest. Works well when the efforts of the players are hard to monitor. Allocates resources to those who are first in line. Casual restaurants use first come to allocate tables.