Question

Describe four common methods countries use for allocating resources and explain how each addresses the issue of competition between members of society.

Answer 1

The four common methods in resource allocation are:

(1) allocation by merit - this can be simply described as a reward system, if you do good, you get a reward, if not you will get a demerit.

(2) allocation by social worth - this method leans toward maximizing the resources in order to benefit the greater good.

(3) allocation by need - this method prioritizes the basic needs of a person like food, water, and shelter.

(4) allocation by equal or random assignment - this method is distributing available goods fairly so that no one can benefit more than the other.