Which allocation method uses tickets drawn at random to decide who receives goods?

Which allocation method uses tickets drawn at random to decide who receives goods?

• A. Lottery
• B. Auction
• C. First-Come, First-Served
• D. Rationing

Answer: (A)

The method used is a lottery. It allocates goods by chance, with tickets drawn at random to decide who receives them. This means everyone who holds a ticket has an equal chance, regardless of how much they value the item, how fast they can act, or how much they’re willing to pay. Lotteries are useful when demand far exceeds supply and a fair, impartial method is desired. They differ from an auction, where the goods go to the highest bidder; from first-come, first-served, which rewards speed or access; and from rationing, which follows predefined rules or quotas.

The method used is a lottery. It allocates goods by chance, with tickets drawn at random to decide who receives them. This means everyone who holds a ticket has an equal chance, regardless of how much they value the item, how fast they can act, or how much they’re willing to pay. Lotteries are useful when demand far exceeds supply and a fair, impartial method is desired. They differ from an auction, where the goods go to the highest bidder; from first-come, first-served, which rewards speed or access; and from rationing, which follows predefined rules or quotas.