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:

Seismographs

Instruments that measure and record details of earthquakes, such as force and duration, by detecting ground motion.

Tsunami

Enormously long oceanic waves generated by major events like quakes, volcano eruptions, or subaquatic landslides.

P-Wave

A type of seismic wave that compresses and expands material in the direction it is traveling, and is the fastest kind of seismic wave.

Rogue Wave

A large, unexpected, and suddenly appearing surface wave that can be extremely dangerous, even to large ships.