ECONOMICS
SCARCITY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Scarcity is a natural and re-occurring condition; shortage is a man-made condition
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Occurring condition; shortage is a man-made condition, shortage doesn’t impact everyone, whereas shortage does impact all people.
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The shortage is a natural and re-occurring condition; scarcity is a man-made condition
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The shortage is a fundamental, universal economic problem.
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Detailed explanation-1: -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.
Detailed explanation-2: -Scarcity refers to the existence of limited resources that are not enough to address unlimited human needs or demands. On the other hand, shortage refers to an occurrence whereby the order in the market outdoes the supply available at a given time.
Detailed explanation-3: -The two main categories of economic scarcity are relative and absolute scarcity. These scarcities differ because of supply and demand: Relative scarcity: A commodity is relatively scarce when there is a rising demand for it, and there is flexibility in producers’ ability to meet that demand.
Detailed explanation-4: -Natural resources like gold, oil, silver and other fossil fuels are naturally rare. When demand exceeds the supply, these resources become scarce and prices can go up. Other commodities, like diamonds, command a high price because of their limited availability and control of their market.
Detailed explanation-5: -Scarcity falls into three distinctive categories: demand-induced, supply-induced, and structural.