What Is the Difference Between a Shortage and Scarcity

question 225

Essay

What is the difference between a shortage and scarcity?
A.Scarcity will almost always exist, but a shortage will exist only if the price is kept below the equilibrium level.
B.Scarcity is a result of two or more alternative uses, and quantities of supply and demand adjusting to flexible prices will create shortages.
C.A shortage will exist when a good is scarce.
D.There is no distinction between the two.
E.They are the same thing.

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Definitions:

Trade Barriers

Restrictions imposed by a government on international trade, such as tariffs, quotas, and import bans, to protect domestic industries.

Negative Balance of Trade

A situation where a country's imports of goods and services exceed its exports, resulting in a trade deficit.

Net Exports

represents the difference between a country's total value of exports and its total value of imports, indicating the balance of trade.

Exports

Merchandise or services dispatched to a different country for the sake of trade or sales.