Question

What is the difference between scarcity and shortage?

A. Scarcity and shortages are really the same thing.
B. Shortages do not affect the economy, while scarcity does.
C. Scarcity is controlled by nature, but shortages are controlled by humans.
D. Shortages are temporary, while scarcity always exists.

Answer 1

B. Shortages do not affect the economy, while scarcity does.

Step-by-step explanation:

The easiest way to distinguish between the two is that scarcity is a naturally occurring limitation on the resource that cannot be replenished. A shortage is a market condition of a particular good at a particular price. Over time, the good will be replenished and the shortage condition resolved.