WORLD WAR I
CAUSES AND COURSE OF THE WAR
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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When certain goods are in short supply.
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When certain goods are in unlimited supply.
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When certain goods are unavailable.
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When certain goods are overpriced.
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Detailed explanation-1: -Scarcity is one of the key concepts of economics. It means that the demand for a good or service is greater than the availability of the good or service. Therefore, scarcity can limit the choices available to the consumers who ultimately make up the economy.
Detailed explanation-2: -Scarcity falls into three distinctive categories: demand-induced, supply-induced, and structural.
Detailed explanation-3: -Relative scarcity is where a good is naturally limited in supply. So, there is only a finite number available. However, we define relative scarcity as being naturally limited, but is also scarce relative to demand. In other words, relative scarcity is where supply does not meet demand.
Detailed explanation-4: -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-5: -Scarcity is so fundamental to economics that scarce goods are also known as economic goods. In economics, scarce goods are those for which demand would exceed supply at a price of zero.