Question

let’s say that on the first day of this class, Econ 10 B, 90 students try to get in, but there are only 70 seats available. Let’s say that we cannot change rooms, and we cannot wait for 20 students to drop the class. We must decide which 70 students to let in, and which 20 to reject. This can be called RESOURCE ALLOCATON. A. Please explain this problem in terms of Supply, Demand, Price and Quantity. B. Please list and discuss at least five methods of allocating this resource --- that is, five ways of deciding which 70 people to let in and which 20 people to … NOT let in. Assume that you have the time and resources necessary to check into the background of all 90 people --- units needed to transfer, GPA, past attendance records – if you desire to do so. C. Please RANK your various methods of allocating this resource from the “BEST” method to the “WORST” method, and defend your ranking system. D. As the rationing body, what are your GOALS? Among these 90 people, what TRAITS or CHARACTERISITCS do you want to reward? WHY? E. What would the “highest bidder” system (also known as the ‘free market’ system) do in this case? F. Most of us see the ‘free market’ solution as the wrong outcome in this case. Why? Why is education different from a car sold by Ford or a burger sold by McDonalds?

Answer 1

A) Allocation of Resources: It is the process of assigning and managing assets in a manner that supports an organization's strategic goals.

It manages the tangible assets with human capital. It involves balancing competing needs and prioroties and determining the most effective course of action in order to maximize the effective use of limited resources and gain the return on investment.

When resources are scarce and limited supply of a good in the market then the scarcity principle suggests that the price for a scarce good should rise until an equilibrium is reached between supply and demand. And it could lead to restricted exclusion of the good to th people who can afford it.  

And when demand is low then people have no issue with decrease or increase in supply, price because everything depend upon the demand factor.

Markets use prices as signals to allocate resources to their highest valued uses. Consumers will pay higher prices for goods and services that they value more highly. Producers will devote more resources to the productionof goods and services that have higher prices, other things being equal. And other things being equal, workers will provide more hours to labor to jobs that pay higher salaries.

The interaction of demand and supply in product and resource markets generates prices that serve to allocate items to their highest valued alternatives.

B) We need to set a better and qualitative approach to allocate the resources. Among these 90 people, we will consider the following traits:

• Students having higher grade will be given at  priority list. because they will provide the optimum results in the near future also.
• Students having different and high quality skills will be chosen and allocated in the class.
• Students having good character certificate will be allocated.

Quality refers to the degree to which the resource meet specifications. So it must be get in.

C) Best to worst method:

A student having high grade should be ranked at priority to get enter in the class. Because it will give productive results in the future. A student who has higher skills set like extra curricular activities, other awards etc. will be priortise accordingly.

But sometimes the students having higher skill set get less marks and doesn't get any recognition in the future which is not a good approach. A student having multiskill with average marks can also do blunders.

B) From these 90 people, Students having high positive attitude towards studies,  good learner and thinker, an inquiring mind, able to work in the groups, dedicated and growth mindset, organised, persistent, consistent, able to deal with failure, values education. will be considered as good to get in the class.

Because a student must have all these traits to be successful in his/her life so that in future he/she can contribute in the economy wisely.