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.

Calculate the present value of perpetuities and annuities given various compounding frequencies.

Determine the necessary initial investment to achieve desired future payments or perpetuities.

Interpret the impact of different interest rates and compounding frequencies on investments and payments.

Analyze the financial feasibility of long-term payment plans and trust funds.

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Definitions:

Scarce Resources

Natural or human assets available in limited quantities relative to their demand, leading to the necessity of economic allocation.

Capital Goods

Long-lasting goods acquired by businesses to produce goods or services, encompassing items like machinery, tools, and buildings.

Consumer Goods

Products that are purchased and used by individuals for personal or household consumption.

Production Possibility Frontier

The Production Possibility Frontier is a curve depicting all maximum output possibilities for two goods, given a set of inputs.