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

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

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.

when a country suffers, for example, a drought period, the market product is affected for a low offer, in this case, potatoes; the government has to tax to the households, which have to give more money for the potatoes which they consume, that situation make them consume substitute goods even through loans, it could increase the financial market movement and the inflationary phenomena, the business has to increase salaries in order to the employees could buy a more expensive food (potatoes) and in order to inflation tha business had to buy expensive supplies in the factor market, while the rest of the world have to gain more money to consume the same amount of potatoes.

b. they tried to evict the squatters from the area.

so sorry if wrong