Which of the Following Describes the Difference Between "Scarcity" and "Shortage

question 150

Multiple Choice

Which of the following describes the difference between "scarcity" and "shortage"?

• A)There is no difference; either word can be used to describe the situation that exists when there is less of a good or service available than people want.
• B)In the economic sense,almost everything is scarce.A shortage of a good or service occurs when the quantity demanded is greater than the quantity supplied at the current market price.
• C)There is a shortage of almost everything.Scarcity occurs only if the quantity demanded of a good or service is greater than the quantity supplied at the current market price.
• D)In the economic sense,almost everything is scarce.A shortage of a good or service occurs when the quantity demanded is greater than the quantity supplied at the equilibrium price.

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Definitions:

Calendar Year

A one-year period that begins on January 1 and ends on December 31, used for most general and financial purposes.

Fiscal Year

A 12-month period that a company or government uses for accounting purposes and preparing financial statements.

Cash Basis

An accounting method where revenues and expenses are recorded when they are actually received or paid, not when they are incurred.

Generally Accepted Accounting Principles

A set of accounting standards, principles, and procedures that companies use to compile their financial statements.