Is paying men more than women for the same job considered a rationing device?

Expert Solution

A rationing device is a means to decide who gets what. We know that people have infinite wants for goods and services and there are limited quantities of resources to produce the goods. A rationing device is used to decide who gets the available quantity of goods.

e.g. suppose there are 200 cards on the lot and every individual wants a car. Now, how we decide who gets what quantity of car? The answer is 'use the rationing device dollar price'. Those people who pay the price for the new car would end up with a new car.

Now, questions that arise are if the dollar price is a fair rationing device? After all, the poor will have lesser dollars and the rich get more units of the cars. Doesn't it discriminate against the poor? True, it does but most of economists consider rationing devices discriminates against someone.

Thus, paying a men more than women for the same job can be considered as a rationing device.

Rahul Sunny answered 2 years ago

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