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BROOKINGS INSTITUTION: An independent, nonpartisan organization devoted to research, analysis, education, and publication focused on public policy issues in the areas of economics, foreign policy, and governance. The Brookings Institution takes its name from Somers Brookings (1850-1932) who in 1922 and 1924 founded the Institute of Economics and a graduate school bearing his name. These two institutions and the Institute for Government Research (IGR), which was the first private organization devoted to analyzing public policy issues at the national level, merged in 1927 to create the Brookings Institution. The Brookings Institution is a non-profit organization located in Washington, D.C.
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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 20, 2024].
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Today, you are likely to spend a great deal of time surfing the Internet wanting to buy either a how-to book on building remote controlled airplanes or an extra large beach blanket. Be on the lookout for slow moving vehicles with darkened windows.
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The first paper currency used in North America was pasteboard playing cards "temporarily" authorized as money by the colonial governor of French Canada, awaiting "real money" from France.
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