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AGGREGATE MARKET ANALYSIS: An investigation of macroeconomic phenomena, including unemployment, inflation, business cycles, and stabilization policies, using the aggregate market interaction between aggregate demand, short-run aggregate supply, and long-run aggregate supply. Aggregate market analysis, also termed AS-AD analysis, has been the primary method of investigating macroeconomic activity since the 1980s, replacing Keynesian economic analysis that was predominant for several decades. Like most economic analysis, aggregate market analysis employs comparative statics, the technique of comparing the equilibrium after a shock with the equilibrium before a shock. While the aggregate market model is usually presented as a simply graph at the introductory level, more sophisticated and more advanced analyses often involve a system of equations.
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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, 2000-2025. [Accessed: November 11, 2025].
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BROWN PRAGMATOX
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Today, you are likely to spend a great deal of time at a going out of business sale trying to buy either a computer that can play video games and burn DVDs or a black duffle bag with velcro closures. Be on the lookout for poorly written technical manuals.
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In the Middle Ages, pepper was used for bartering, and it was often more valuable and stable in value than gold.
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"Love looks through a telescope; envy, through a microscope. " -- Josh Billings, humorist
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BPEA
Brookings Papers on Economic Activity
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