Question

What is the difference between a shortage and scarcity?

a. a shortage will exist when a good is scarce.
b. scarcity will always exist because choices must be made, but a shortage will only exist if the price is kept below the equilibrium level.
c. scarcity is a result of two or more alternative uses and will always exist, and quantities of supply and demand adjusting to flexible prices will create shortages.
d. there is no distinction between the two. they are the same thing?

Answer 1

1. Capital and land

2. Human capital

3. a person who starts an all-organic cleaning supplies business that employs others.

4. A shortage can be temporary or long-term , but scarcity always exists.

5. Examining opportunity costs.

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Answer 2

The difference between scarcity an shortage is that a scarcity is something that occurs naturally due to limitations on the resources that have no way to be replenished. A shortage comes from a condition in the market when a certain good is set at a certain price. So the correct answer is B.