The supply of a desired good, service or factor of production has a limited supply. This scarcity is what creates prices. Prices are a form of rationing that relies on voluntary exchange as opposed to the use of force.
Anthony Carilli - The Economic Way of Thinking
Paul Cwik - Problems and Prices
AUGUST 07, 2009 by SHELDON RICHMAN
Economics 101 tells us that to accomplish the administration's stated health care goals directly--more coverage at lower cost--the government would have to take a third step: rationing.
AUGUST 06, 2008
In a world where concerns about the environment and resources dominate political discussion and, for people like Al Gore, are a "generational mission [that gives] moral purpose" to our lives, thinking clearly about these issues is crucial. Economics can contribute to this discussion by providing its perspective on words such as "scarcity" and "resources," which are often contested or misunderstood.But how economists use those words is vulnerable to misunderstanding. More . . .
—A NEW article by Steven Horwitz
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MARCH 24, 2010 by WILLIAM L. ANDERSON
To the surprise of no one who understands Congress, ObamaCare passed, and the Usual Suspects are celebrating this leap into the abyss.