Which statement best describes the relationship between scarcity and shortage?
A) Neither scarcity nor shortages will exist if money prices are allowed to determine who gets what.
B) Scarcity and shortages are unavoidable as long as money prices are allowed to determine who gets what.
C) Scarcity is an inescapable fact of life but shortages are avoidable.
D) Shortages are an inescapable fact of life but scarcity can be eliminated.
C
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In the United States, the average length of expansions from 1950 to 2009 was more than twice as long than they were from 1900 to 1950
Indicate whether the statement is true or false
If the price level rises above what was expected and nominal wages are fixed, then
a. production becomes less profitable so firms will hire fewer workers. b. production becomes less profitable so firms will hire more workers. c. production becomes more profitable so firms will hire fewer workers. d. production becomes more profitable so firms will hire more workers.