In 2016, tornadoes damaged many parts of the U.S. Midwest, destroying homes, businesses, schools, and infrastructure. In strictly economic terminology, these tornadoes are said to have caused
A) scarcity, because the damages made food and shelter scarce.
B) scarcity, because some goods were difficult to get.
C) shortages, because supplies were cut off and goods were destroyed.
D) tradeoffs, because some areas of the country were damaged when others were not.

Question

Quizplus · Accepted Answer

The tornadoes caused shortages because of the disruption in supplies and destruction of goods. Scarcity implies a more general lack, whereas shortages refer specifically to a lack of supply. Tradeoffs are not necessarily a result of the tornadoes but rather a decision-making concept. Option A is incorrect because the tornadoes did not make food and shelter scarce on a national level. Option B is also incorrect because the tornadoes did not make goods difficult to get on a national level.

In 2016, Tornadoes Damaged Many Parts of the U