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:

Average Operating Assets

The average value of the assets used in the normal operation of a business to generate revenue, calculated typically over a fiscal year.

Net Operating Income

A measure of a company's profitability by subtracting operating expenses from its operating revenues.

Minimum Required Rate

The lowest return on investment deemed acceptable by an investor or manager, often used in capital budgeting to evaluate potential projects.

Investment Opportunity

An asset or item that offers the potential for profit or income, either through capital appreciation or earnings.