Difference between rationing and hoarding in economics
Answers
Answered by
1
Answer:
Rationing refers to an artificial control on the distribution of scarce resources, food items, industrial production, etc. ... In economics, rationing refers to an artificial control of the supply and demand of commodities.
Answered by
7
Rationing is legal and hoarding is illegal in economics.
Explanation:
- Rationing can be defined as limited access to the required commodities after due consideration. On the other hand, hoarding is referred to a situation where more than the required amount of a product is kept by the seller or a producer.
- The main aim of rationing is to ensure regular availability of goods to the citizens whereas the aim of hoarding is to create fake demand and increase the prices of the product in the market.
- Rationing is legal while hoarding is illegal.
- Rationing is one of the most effective ways of controlling the black market whereas hoarding is the reason behind the existence of black markets.
Similar questions