Search results
Results From The WOW.Com Content Network
It is the process of allocating scarce resources among the various projects or business units. There are a number of approaches to solving resource allocation problems e.g. resources can be allocated using a manual approach, an algorithmic approach (see below), [2] or a combination of both. [3]
A scarce good is a good that has more quantity demanded than quantity supplied at a price of $0. The term scarcity refers to the possible existence of conflict over the possession of a finite good. One can say that, for any scarce good, someone's ownership and control excludes someone else's control. [20]
Economics is the study of the production, distribution, and consumption of goods and services. Managerial economics involves the use of economic theories and principles to make decisions regarding the allocation of scarce resources. [2]
Because productive resources are scarce, the resources must be allocated to various industries in just the right amounts, otherwise too much or too little output gets produced. [2] When drawing diagrams for businesses, allocative efficiency is satisfied if output is produced at the point where marginal cost is equal to average revenue.
Property rights are also believed to lower transaction costs by providing an efficient resolution for conflicts over scarce resources. [43] Empirically, using historical data of former European colonies, Acemoglu, Johnson and Robinson find substantial evidence that good economic institutions – those that provide secure property rights and ...
With a well-designed auction, resources are allocated efficiently to the parties that value them the most, the government securing revenue in the process. [1] Spectrum auctions are a step toward market-based spectrum management and privatization of public airwaves, and are a way for governments to allocate scarce resources.
An economic system is a system of production, resource allocation, exchange and distribution of goods and services in a society or a given geographic area. In one view, every economic system represents an attempt to solve three fundamental and interdependent problems:
From that precondition arises the need for principles to resolve competing interest and claims concerning a just or at least morally preferable distribution of scarce resources. [ 1 ] In social psychology , distributive justice is defined as perceived fairness of how rewards and costs are shared by (distributed across) group members. [ 2 ]