1. Which of the following statements are true of using a first-come, first-served basis to distribute goods? Check all that apply.
A. It allows everyone to get everything he or she wants.
B. It generates the incentive to be first.
C. It provides no incentive to allocate goods from lower-valued uses to higher-valued uses.
D. It is completely fair.
2. Which system for allocating goods provides the best incentives to allocate goods from lower-valued uses to higher-values uses?
A. A first-come, first-served basis
B. The government
C. The market
D. A lottery