This paper compares the performance of exhaustive and nonexhaustive M/M/1/N queues with working vacation and threshold policy. In an exhaustive queue, the server slows down its service rate only when no customers exist in the system, and turns to normal service until the number of customers achieves a threshold. However, in a nonexhaustive queue, the server switches service rate between a low and a high value depending on system congestion. To get equilibrium arrival rate of customers and social welfare for the two types of queues, we first derive queue length distributions and expected busy circle. Then, by making sensitivity analysis of busy circle, system cost, arrival rate and optimal social welfare, we find that customers tend to join exhaustive queues instead of nonexhaustive queues, and the optimal threshold in an exhaustive queue is probably inconsistent with the one in a nonexhaustive queue. Moreover, in general, whether to consider system cost or not in social welfare will obviously affect the tendencies of optimal arrival rate and optimal social welfare with the threshold and system capacity for the two types of queues, especially for the nonexhaustive queues, and then affect the final decisions of social planner or system manager.