Explain how the food banks improved efficiency by creating a market system to allocate food

  

Learning Goal: I’m working on a macro economics discussion question and need an explanation and answer to help me learn.Listen this episode of the Planet Money podcast, Summer School 2: Markets and Pickles. (it’s 31 minutes).Respond each of the following prompts. Total response should be 100-200 words 1. Explain how the food banks improved efficiency by creating a market system to allocate food.2. Each food bank was given “money” (shares) based on need and number of clients served. How does that differ from how a real market works, and what effect does that have on distribution/allocation? Which method do you think is better? 3. One main topic of the podcast is whether market forces are the best way to allocate scarce resources. A major debate going on these days is how much market forces should be used in allocating resources in education (for example should all schools be private) and health care (other wealthy nations have national health care, not the largely private system we use the US). Choose one of these areas (education or health care) and briefly explain why you think markets should or should not be used.2-Return to this discussion forum, read some answers, and respond to two other students in a substantive way (you can respond to responses for any prompt). You can discuss what you agreed or disagreed with and why (politely of course!), was confused about, or add to their thinking. Ali1. the market system allows food banks to gain byfocusing their purchases on loads of food that are geographically close, and so cut down on transportation costs. Food banks collect food through local and national partnerships and distribute it to people facing economic hardship. Historically, food banks collected surplus food from suppliers and distributors. Unfortunately, this also included nutritionally low-quality foods, even including soda and candy. 2. The market for education fails on various counts to guarantee an efficient allocation of resources and deliver quality education through competition. Not only is the market an imperfect one due to the differentiation in the quality of education, but also the social demand for education remains largely unaddressed.3. As everyone knows, free markets are important because they voluntarily bring together willing buyers and sellers. Supply and demand are the sines qua non of economics. In fact, so important is their function that, in classical economic theory, a free market occurs only when no single buyer or seller can determine the price. Healthcare holds a significant place in the quality of human capital. The increased expenditure in healthcare increases the productivity of human capital, thus making a positive contribution to economic growth.2-Alice1. Because a market system allows buyers and sellers to come together, it allowed food banks to receive food that they needed the most. The system consisted of “fake money,” called shares, that food banks could use to bid on foods they needed. It prevented food banks from receiving the food they didn’t need and divided the food fairly to the banks that needed it the most.2. The food banks differ from a real market economy in which businesses sell goods for the highest price consumers can pay while the consumers try to purchase goods for the lowest price. The effect this has on distribution is that higher-income individuals have an easier advantage at receiving goods, so more goods are given to them. On the other hand, low-income individuals, have the most need, but they receive fewer goods. I think the food bank system is better because those who need it the most have the ability to receive the most goods. 3. Markets should be used in education to allow competition and increase better performances of the education provided by the schools. It allows the schools to have more freedom and responsibility which creates higher productivity.Requirements: 400 words

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