Google
Monday 
March 8, 2021 

AmosWEB means Economics with a Touch of Whimsy!

AmosWEBWEB*pediaGLOSS*aramaECON*worldCLASS*portalQUIZ*tasticPED GuideXtra CrediteTutorA*PLS
VALUE IN EXCHANGE: The ability to trade an item, especially money, for other goods and services that can then be used to satisfy wants and needs. Value in exchange means that value, that is satisfaction, is obtained indirectly through the acquisition of something else. For an item to have value in exchange it need NOT have value in use, value obtained directly from the consumption of a good or service.

Visit the GLOSS*arama


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.

Scarcity

Like 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 Exchanges

Because 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 Good

The 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 Production

Another, 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.

<= ECONOMIC REPORT OF THE PRESIDENTECONOMIC SCIENCE =>


Recommended Citation:

ECONOMIC RESOURCE, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2021. [Accessed: March 8, 2021].


Check Out These Related Terms...

     | factors of production | economic good | scarce good | scarce resource | free good | free resource | free lunch |


Or For A Little Background...

     | scarcity | economic analysis | good | service | opportunity cost | satisfaction |


And For Further Study...

     | allocation | consumer sovereignty | economic growth | efficiency | ownership and control | production possibilities | production cost | factor payments | resource markets |


Search Again?

Back to the WEB*pedia


APLS

ORANGE REBELOON
[What's This?]

Today, you are likely to spend a great deal of time at an auction seeking to buy either a wall poster commemorating the first day of winter or blue cotton balls. Be on the lookout for infected paper cuts.
Your Complete Scope

This isn't me! What am I?

Natural gas has no odor. The smell is added artificially so that leaks can be detected.
"If you don't have time to do it right, when will you have time to do it over?"

-- John Wooden, Basketball coach

AAXICO
American Air Export and Import Company
A PEDestrian's Guide
Xtra Credit
Tell us what you think about AmosWEB. Like what you see? Have suggestions for improvements? Let us know. Click the User Feedback link.

User Feedback



| AmosWEB | WEB*pedia | GLOSS*arama | ECON*world | CLASS*portal | QUIZ*tastic | PED Guide | Xtra Credit | eTutor | A*PLS |
| About Us | Terms of Use | Privacy Statement |

Thanks for visiting AmosWEB
Copyright ©2000-2021 AmosWEB*LLC
Send comments or questions to: WebMaster