SSC
GENERAL ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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They are really the same
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Shortages always exist and scarcity is temporary
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Shortages are temporary and scarcity always exist.
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Scarcity is limited and shortages are unlimited
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Detailed explanation-1: -The bottom line is that scarcity is a naturally occurring limitation on the resources, and such resources cannot be replenished. On the other hand, a shortage is an artificial limitation brought about by the market situation. It can be witnessed in particular goods or services, resulting in a given price.
Detailed explanation-2: -Land – a shortage of fertile land for populations to grow food. For example, the desertification of the Sahara is causing a decline in land useful for farming in Sub-Saharan African countries. Water scarcity – Global warming and changing weather, has caused some parts of the world to become drier and rivers to dry up.
Detailed explanation-3: -Summary of Surplus vs. Shortage. Surplus refers to the amount of a resource that exceeds the amount that is actively utilized. On the other hand, shortage refers to a condition whereby there is an excess demand of products in comparison to the quantity supplied in the market.