Scarce
(adjective)
Insufficient to meet demand.
Examples of Scarce in the following topics:
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Scarcity Leads to Tradeoffs and Choice
- When scarce resources are used, actors are forced to make choices that have an opportunity cost.
- Most resources are scarce in most situations.
- Since resources tend to be scarce, anyone that uses the resource has to make a decision about how to use it.
- Your scarce resources force you to make a choice and a trade-off producing one product or another.
- When scarce resources are used (and just about everything is a scarce resource), people and firms are forced to make choices that have an opportunity cost.
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Economics as a Study of the Allocation of Scarce Resources
- The domain of economics is the study of processes by which scarce resources are allocated to satisfy unlimited wants.
- Supply, demand, preferences, costs, benefits, production relationships and exchange are tools that are used to describe and analyze the market processes by which individuals allocate scarce resources to satisfy as many wants as possible.
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Introduction to Microeconomics
- In the last part of the 19th century, "political economy" became "economics. " Since that time, economics has been frequently defined as "the study of how scarce resources are allocated to satisfy unlimited wants. " As a professional discipline, economics is often regarded as a decision science that seeks optimal solutions to technical allocation problems.
- One perspective is the technical analysis of the processes by which scarce resources are allocated for competing ends.
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What is Economics?
- Orthodox economics is defined as the study of how relatively scarce resources are allocated to competing alternative uses within a social context.
- Some texts define economics as "the social science concerned with the efficient use of limited or scarce resources to achieve maximum satisfaction of human material wants" [McConnell, 2002, p3].
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The Importance of Factor Prices
- For example, a country where capital and land are abundant but labor is scarce will have comparative advantage in goods that require lots of capital and land, but little labor.
- Labor intensive goods on the other hand will be very expensive to produce since labor is scarce and its price is high.
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Performance
- The function of a market system is to provide the information and incentives that will result in the allocation of relatively scarce resources and goods to their highest valued use within a social system.
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Crowding-Out Effect
- ., via stimulus programs) could create competition with the private sector for scarce funds available for investment, resulting in an increase in interest rates and reduced private investment or consumption.
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Key Differences
- Stemming from Adam Smith's seminal book, The Wealth of Nations, microeconomic and macroeconomics both focus on the allocation of scarce resources .
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The Magic of the Economy
- Economics studies human activities and constructions in environments with scarce resources, and uses the scientific method and empirical evidence to build its base of knowledge.
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Private Property Rights
- Thus, and this point is important, the concept of property rights in the context of the new approach applies to all scarce goods.
- The prevailing system of property rights in the community is, them, the sum of economic and social relations with respect to scarce resources in which individuals stand to each other.