Strengths and weaknesses of rations A ration is a fixed allowance on provisions on any product that is needed but has a shortage. Most Times rations have occurred wars and other catastrophic events that involved a mass reduction. A ration also can be seen in cases where something is in high demand but because the producer wants to be fair, they put a limit on what can be given. There are strengths and weaknesses to some degree in each situation that may occur due to a ration be orchestrated. Auctions are due to the sell of merchandise for buyers to bid on, for example Storage Company’s auction off a unit due to non payment. The strength in this as related to rations is that it is open to every one and it allows everyone to bid on it. The weakness is that there are only so many units and the ratio of people to units is scarce. Then there are the ration coupons the strength in these is that it allows a big number of consumers to have a chance at certain product. The weakness to this is that it limits what people can get, these coupons were mostly used during wars and these days grocery stores just put a limit on certain items rather than go through the trouble of issuing out a coupon. The term first come first serves have a long list of pro’s and cons. One important strength would be that it creates and urgency and depending on if there is a limit it allows consumer to take advantage of a great deal. The weakness is that when it is a first come first serve basis in rations you end up having a large crowd and a large amount of disappointed people. Rations are only good when it is a must but when a company does it because they want to it can be seen as a bad idea than can upset some consumers if not given a valid reason. Government failures According to the readings in chapter one governments and laws in all countries regulates business activities (Bethel, 33). Due to this the government often likes to use this a an excuse to step into business ventures that they may feel benefit “the people.” Fannie Mae and Freddie Mac were formed as quasi-governmental institutions to help encourage mortgages because many felt that many private sectors were allowing loans to those of lower income. This turned out to be a mess and they began to process more loans which cause a huge debt. Another instance is when in 2009 they started giving out stimulus checks and now in 2013 people are double taxed so that the money can be put back. The market has enough failures as it is and when the government intervenes it seems things get worse. Government interventions For years the government has always imposed ways of fixing the air pollution problem. They have tried numerous of ways to fix the problem one being the clean air act which was started in 1963 was put in place to control emissions and other things that contributed to air pollution. This has failed because it’s 2013 and they are still trying to fix the problem. Income support for the poor has been an issue for decades. Many low income families receive assistance from the government in regards to welfare, food stamps, Medicaid etc. The government decided to cut people off and put stipulations on them requiring them to work a certain amount of hours receive certain assistance. This did not fix the problem but made people quit their jobs so that they could receive more assistance because the new policy allowed them to volunteer for a certain amount of hours a week and still get their benefits.

Money in circular flow Money in the circular flow can be seen as the plumbing that keeps the system circulating. Money is important to the circular flow system because it must be constantly circulated .This affects the stocks, banks and investment. The dollar is important because when the money stops flowing so does the goods and services. This would cause a ration in our government and it would be worse because with out the backing od the dollar nothing could be given.

REFERNCES
Bethel University. Business, Government & the International Economy. Mcgraw hill; 2010.