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AGGREGATE DEMAND: The total (or aggregate) real expenditures on final goods and services produced in the domestic economy that buyers would willing and able to make at different price levels, during a given time period (usually a year). Aggregate demand (AD) is one half of the aggregate market analysis; the other half is aggregate supply. Aggregate demand, relates the economy's price level, measured by the GDP price deflator, and aggregate expenditures on domestic production, measured by real gross domestic product. The aggregate expenditures are consumption, investment, government purchases, and net exports made by the four macroeconomic sectors (household, business, government, and foreign).
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                           SCARCE: A condition in which a given good or resource is limited relative to its desired uses. This is a special condition of the general condition of scarcity. A scarce good or resource is typically exchanged through markets and carries a positive price. Most goods, services, resources, and any other commodities that come to mind are scarce. They might be expensive, they might be cheap, they might be abundant, or they might be extremely rare. If they are exchanged in markets, are used to satisfy wants and needs, or play almost any role in the economy, then they are probably scarce. Being scarce means a commodity cannot satisfy all existing wants or needs.Compared to ScarcityBeing scarce is a special condition of the pervasive problem of scarcity. The two terms are related, but have slightly different meanings. Scarcity means that society is generally faced with unlimited wants and needs, but limited resources. Scarce means that this condition is applied to a particular commodity, that is, the uses of the commodity are limited relative to the amount available.- Scarcity is the general condition of unlimited wants and needs, but limited resources, faced by society.
- Scarce is the specific condition of a limited quantity relative to the desired uses faced by a particular commodity.
What About Free?The alternative to scarce is free. A free good, service, resource, or other commodity results if the quantity available exceeds the desired use. In other words, there is more than enough to go around, to meet all needs at a zero price, with some left over. Air is the best example. With few exceptions (sunken submarines, orbiting space vehicles, locked bank vaults) the quantity of air exceeds existing uses. Plenty of air is available. This abundance means that the price is zero and that a market cannot be established. Should anyone attempt to sell the commodity at a positive price, potential buyers can simply acquire the good elsewhere for free. Compared to ShortageA market shortage arises if the quantity of a good demanded is greater than the quantity of the good supplied, at a given price. This is a specific condition of the market brought on because the going market price is less than the market-clearing equilibrium price. Having a market shortage is not the same thing as being scarce.A good or resource is scarce if it is limited relative to the desire use, at a zero price. In other words, there is not enough of the good or resource available to satisfy all uses. A market shortage, in contrast, exists if the current price is below the market clearing price. However, should the price rise, a shortage can quickly disappear. The shortage can even turn into a surplus. Whether the market for a good has a shortage or surplus is unrelated to being scarce. A scarce good or resource can have a shortage, or a surplus, or neither. In fact, a good or resource is necessarily scarce if it is traded through a market.
Recommended Citation:SCARCE, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2024. [Accessed: April 18, 2024].
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Today, you are likely to spend a great deal of time visiting every yard sale in a 30-mile radius wanting to buy either a wall poster commemorating yesterday or pink cotton balls. Be on the lookout for bottles of barbeque sauce that act TOO innocent.
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Rosemary, long associated with remembrance, was worn as wreaths by students in ancient Greece during exams.
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"The road to success is always under construction. " -- Lily Tomlin, Actress
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ACT
Advance Corporation Tax
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