Question

What is the difference between a shortage and a scarcity?

a. A shortage can be temporary or long-term, but scarcity always exists.
b. A shortage results from rising prices; scarcity results from falling prices.
c. A shortage is a lack of all goods and services; scarcity concerns a single item.
d. There is no real difference between a shortage and a scarcity.

Answer 1

The correct answer is letter c. A shortage is a lack of all goods and services; scarcity concerns a single item. The difference between a shortage and a scarcity is that a shortage is a lack of all goods and services; scarcity concerns a single item.