Question

Queueing (standing in line) is regarded by economists as an inefficient means of allocating a scarce resource. Why? You do not need a graph for this question. Answer in four sentences or fewer.

Answer 1

Economists consider queuing as inefficient because queuing leads to overcrowding of customers demanding a service. It is likely that in the process of rationing for a service, a few people in the queue have to be eliminated due to limited resources available. Queuing leads to congestion and wasted time and resources, which is considered are an inefficient method of allocating resources by economists. A better method would be distribute the available resources through some rationing process. A better way to eliminate this inefficiency would be increase the available resources so as to be able to serve all in the queue but that again would require eliminating the queue itself.