Economists are proud of the fact that prices act as virtually costless signals to consumers and producers about how to allocate their scarce resources. In effect, prices “ration” these scarce resources in terms of what is produced, how it is produced, and who benefits from these goods and services. Suppose you have been named president of a small island in the South Pacific. Propose an alternative way to allocate the island’s scarce resources, and compare it to the price system in terms of costs of production, mix of goods and services produced, and who benefits from these goods and services. If you think that your system is preferable, explain why.