The Difference Between Scarcity and a Shortage Is That

question 76

Multiple Choice

The difference between scarcity and a shortage is that

• A) scarcity is caused by poverty and shortages are caused by natural disasters.
• B) shortages are a type of scarcity caused by natural disasters while scarcity is caused by human errors.
• C) scarcity always is a part of human life while shortages usually are temporary.
• D) shortages are always part of human life while scarcity is usually temporary.

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Definitions:

Nonspendable

Funds that cannot be spent because they are either not in spendable form or are legally or contractually required to be maintained intact.

Assigned

Assigned typically refers to the allocation or designation of tasks, resources, or responsibilities to a person or a team within an organization.

Restricted

Refers to assets or conditions that are limited in terms of access, use, or transferability due to legal, contractual, or regulatory requirements.

Modified Accrual Accounting

A method of accounting that recognizes revenues when they become measurable and available to finance expenditures of the fiscal period, and expenditures are recognized when the related fund liability is incurred.