Question

1. economics is the study of how governments

calculate their income tax
chose from limited resources to meet their needs
respond to war and drought
gain knowledge and skills from study and experien

1. what is the difference between a shortage and scarcity?

a shortage is temporary but scarcity always exists
a shortage results from rising prices; scarcity results from falling prices
a shortage is lack of all goods and services; scarcity concerns a single item
there is no real difference between a shortage and scarcity

Explanation:

Economics is about making choices in the face of limited resources. Scarcity is the fundamental economic problem of having limited resources relative to unlimited wants and exists always. A shortage is a temporary situation where the quantity demanded exceeds the quantity supplied at a given price.

Answer:

1. Chose from limited resources to meet their needs
2. A shortage is temporary but scarcity always exists