Scarcity and Shortages Differ in That

question 262

Multiple Choice

Scarcity and shortages differ in that

• A) scarcity is caused by natural disasters and shortages are caused by mistakes people make.
• B) scarcity is a condition of human life while shortages are usually temporary phenomena related to an imbalance between the amount desired and the amount produced.
• C) scarcity is a type of shortage but shortage is a broader concept.
• D) shortages apply to resource markets while scarcity applies to product markets.

---

Definitions:

Gasoline Supply

The total amount of gasoline available for purchase in a market, influenced by factors like production rates and import levels.

Price Elasticity of Supply

An indicator of the responsiveness of the supply of a product to variations in its price.

Homestead Exemption

A law permitting a debtor to retain the family home, either in its entirety or up to a specified dollar amount, free from the claims of unsecured creditors or trustees in bankruptcy.

Bankruptcy Law

The area of law that deals with the rules and processes through which individuals or businesses can eliminate or reorganize their debts under the jurisdiction of a federal bankruptcy court.