
From time to time I give a lecture that begins with a one-line definition of economics: the study of the allocation of scarce resources. I note that we often think of capital as being the scarcest of resources, but in a broader sense, time, land or other assets, labor, and any other commodity for which we wish there was a greater supply might also be considered scarce. For many of our cities, scarcities may include tax revenues, residents, adequate infrastructure, and employers that provide jobs.
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