From: GARY HELMS (monsterinabox2001@yahoo.com)
Date: Thu Nov 18 1999 - 04:23:03 MST
--- Billy Brown <bbrown@transcient.com> wrote:
<snip>
> I offered that the constraint is actually the labor
> content of said goods -
> energy and matter content are important only to the
> extent that they require
> effort to produce.
<snip>
> [...] but are still sufficiently small that
> they do not experience
> scarcity of plentiful natural resources like
> sunlight and rocks.
Capital and raw materials are not infinite, and are
thus -always- in a position of relative scarcity.
There are millions and millions of possible ways of
allocating them (including leaving raw materials
unexploited for future use.)
Due to this relative scarcity raw materials and
capital have a value. This value is
determined/discovered in the market place by balancing
various supply and demand curves.
Some useful economics terms:
opportunity cost
supply and demand
scarcity
markets
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