What is the relationship between scarcity and shortage, as economists use the terms?
A) Scarcity and shortage cannot exist simultaneously.
B) Shortages are the basic cause of scarcity.
C) Scarcity creates shortages in the long run.
D) Scarcity is relative while shortages are absolute.
E) Scarcity is unavoidable but shortages are not.
E
You might also like to view...
The International Nickel Company of Canada is often cited as an example of monopoly. What was the source of the barrier to entry that gave this firm monopoly power?
A) There were important network externalities in the production of nickel. B) Economies of scale resulted in the company becoming a natural monopoly. C) It was a public enterprise; therefore, the Canadian government blocked entry into the market for nickel. D) control of a key resource
Suppose the market for potatoes can be expressed as follows: Supply: QS = -20 + 10p Demand: QD = 400 - 20p If the government sets a maximum price of $10 per unit, what will be the quantity demanded and quantity supplied?
What will be an ideal response?