What Is the Difference Between a Shortage and Scarcity

question 241

Multiple Choice

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.They are the same thing.

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Definitions:

Constant Rate

A stable speed or frequency at which something happens or changes over a particular period of time.

Constant-Rate

Pertaining to a process or quantity that changes over time at an unvarying speed or amount.

Progressive Tax

A tax system where the tax rate increases as the taxable amount increases, placing a heavier burden on wealthier taxpayers.

Proportional Tax

A taxation system where the tax rate remains constant regardless of the amount subject to tax.