Future Business Leaders of America (FBLA) Agribusiness Practice Test

What do we understand by 'deficient in quantity in relation to demand'?

1. Abundance

2. Scarcity

3. Surplus

4. Equilibrium

The correct answer is: Scarcity

The phrase 'deficient in quantity in relation to demand' refers to a situation where there is not enough product or resource available to meet the needs or desires of consumers. This concept is encapsulated by the term "scarcity," which signifies a fundamental economic problem where limited resources are insufficient to satisfy unlimited wants. In scenarios of scarcity, the demand exceeds the available supply, leading to competition among consumers and often resulting in higher prices. This imbalance highlights the importance of understanding market dynamics and resource allocation. The other terms, while relevant to economic discussions, do not reflect this specific situation. For instance, "abundance" indicates an excess supply, "surplus" suggests an excessive quantity beyond what is needed, and "equilibrium" refers to a state where supply and demand are balanced. Therefore, "scarcity" is the most appropriate term to describe being deficient in quantity relative to demand.