Question

Which situation best represents a local government dealing with a problem of

scarcity?

IDA. A city lowers corporate taxes to encourage businesses to stay

there.

B. A city borrows a large amount of money from a bank to build a

new hospital.

C. A city helps poor citizens pay for their housing and medical bills,

O

D. A city can afford to make repairs on only one of its schools,

SUBMIT

Answer 1

D. A city can afford to make repairs on only one of its schools

Step-by-step explanation:

This is the only case where the city is seen to not have enough resources within its bother to cater for its need. In the other options A ad C, the city can afford some cuts and costs while in option B it can borrow within its boundaries, but can't do any of these in option D.