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ADJUSTMENT, LONG-RUN AGGREGATE MARKET: Disequilibrium in the long-run aggregate market induces changes in the price level that restore equilibrium. If the price level is above the long-run equilibrium price level, economy-wide product market surpluses cause the price level to fall. If the price level is below the long-run equilibrium price level, economy-wide product market shortages cause the price level to rise. In both cases long-run equilibrium is restored. Price level changes induce changes in aggregate expenditures but NOT changes in real production. The reason is that long-run aggregate supply is full-employment real production, which is unaffected by the price level.
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                           ECONOMIC RESOURCE: A resource with an available quantity less than its desired use. Economic, or scarce, resources are also called factors of production and generally classified as either labor, capital, land, or entrepreneurship. Economic resources are the workers, equipment, raw materials, and organizers that are used to produce economic goods. Like the more general society-wide condition of scarcity, a given resource falls into the economic or scarce category because of it has a limited availability relative to (potentially unlimited) productive uses. Adding the word "economic" before the word "resource" signifies that a resource has limited availability relatively to desired use and is thus subject to economic analysis. An economic resource is typically exchanged through a market. Buyers pay a price to obtain the resource and sellers give up the resource in exchange for payment.ScarcityLike many economic concepts, an economic resource can be traced to the fundamental problem of scarcity. Scarcity is the widespread condition of limited resources and unlimited wants and needs. An economic resource is more specifically a resource with limited availability relative to desired use. The two concepts are closely related. Scarcity is the general problem underlying the study of economics and an economic resource is a specific resource that reflects this general scarcity condition.The contrasting notion to an economic, or scarce, resource is a free resource. A free resource is one that is plentiful enough to satisfy all desires uses, often with some left over. Market ExchangesBecause limited availability means that an economic resource has more uses than it can meet, it is generally exchanged through a market. The market price serves to allocate the resource to its most satisfying and valuable use. Users gaining the greatest benefit from the economic resource are willing to pay the highest price and can thus out bid other potential users to gain control. Moreover, payment received by those who have control of the economic resource compensates for the opportunity cost of foregone alternatives.Economic GoodThe word "economic" is also added to the word "good" to reflect a similar concept. The difference is that an economic resource is used to produce an economic good. The resource is transformed or used for production and the good is then used to provide satisfaction. However, in both cases the item is limited relative to the desired use.Factors of ProductionAnother, more common, name for economic resources is factors of production--labor, capital, land, and entrepreneurship. Labor includes the mental and physical human efforts. Capital includes machinery, equipment, buildings, and structures. Land includes naturally occurring raw materials. Entrepreneurship includes the risking-taking organizers of production.
Recommended Citation:ECONOMIC RESOURCE, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2018. [Accessed: October 17, 2018].
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BROWN PRAGMATOX
[What's This?]
Today, you are likely to spend a great deal of time searching the newspaper want ads trying to buy either a birthday greeting card for your father or a T-shirt commemorating the first day of spring. Be on the lookout for florescent light bulbs that hum folk songs from the sixties.
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This isn't me! What am I?
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The portrait on the quarter is a more accurate likeness of George Washington than that on the dollar bill.
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"Do what you feel in your heart to be right ‚ for you'll be criticized anyway. You'll be damned if you do and damned if you don't. " -- Eleanor Roosevelt, first lady
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ARIMA
Autoregressive Integrated Moving Average
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