Main ways of resource allocation

The main ways of resource allocation are planned allocation and market allocation.

1. Planned allocation: The so-called planned allocation, that is, planned adjustment, mainly refers to the allocation of resources by government planning departments through economic plans, economic policies, economic levers or setting some economic indicators according to the needs and possibilities of society. This planned economy encourages the government to intervene in economic life, which is a kind of pre-adjustment.

2. Market mechanism: refers to the mechanism of mutual connection and function between supply and demand, price, competition, risk and other factors in the market organism, which is the way to allocate resources through market competition and the realization form of the law of value. Market mechanism includes: price mechanism, supply and demand mechanism, market mechanism, competition mechanism and risk mechanism.

3. Generally speaking, whether it is planned allocation or market mechanism, if resources can be allocated relatively reasonably, the economic benefits will be significantly improved and the economy will be full of vitality; Otherwise, the economic benefits will be obviously low and the economic development will be hindered.

The essence of resource allocation is as follows:

1, resource allocation is a choice made by comparing relatively scarce resources in various uses. Resources refer to the sum of manpower, material resources and financial resources in social and economic activities, and are the basic material conditions for social and economic development. At a certain stage of social and economic development, resources are always relatively scarce relative to people's needs, and relatively scarce resources are rationally allocated.

2. In economics, resources are divided into narrow sense and broad sense. Narrow resources refer to natural resources; Resources in a broad sense refer to economic resources or production factors, including natural resources, labor and capital. It can be said that resources refer to the sum of manpower, material resources and financial resources in social and economic activities, and are the basic material conditions for social and economic development.

3. Resource allocation means that the scarcity of resources determines that any society must allocate limited resources to all fields of society in a certain way, so as to realize the best utilization of resources, that is, to produce the most applicable goods and services with the least resource consumption and obtain the best income.