What Is the Difference Between a Shortage and Scarcity

question 70

Multiple Choice

What is the difference between a shortage and scarcity?

• A) Scarcity will always exist because choices must be made, but a shortage will only exist if the price is kept below the equilibrium level.
• B) Scarcity is a result of two or more alternative uses and will always exist, and quantities of supply and demand adjusting to flexible prices will create shortages.
• C) A surplus will exist when a good is scarce; a shortage merely implies that there isn't as much of something as people would like, which is nearly always the case.
• D) There is no distinction between the two.They are the same thing.

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Definitions:

Range of Options

The spectrum or variety of choices available in a given situation or for making a particular decision.

Logistics Outsourcing

The practice of hiring third-party service providers to handle logistics operations such as transportation, warehousing, and distribution, allowing companies to focus on their core activities.

Deregulation

involves reducing or eliminating government control over industry sectors to foster competition and improve efficiency.

Transportation Companies

Businesses that specialize in moving goods, passengers, or both from one location to another.