The situation that best represents a local government dealing with a problem of scarcity is option D. Here's why:
1. Option D states that a city has enough money to repair only one of its many damaged bridges. This scenario exemplifies scarcity, where the city faces limited resources (money) and must make a choice due to insufficient funds to address all the needed repairs.
2. Scarcity, in this case, forces the local government to prioritize and allocate its limited financial resources to repair the most critical bridge, highlighting the trade-offs that come with scarcity. By choosing to repair only one bridge, the city is acknowledging the constraints imposed by scarcity and making a decision based on the available resources.
3. This situation showcases how scarcity influences decision-making within local governments, as they must carefully manage and distribute their limited resources to address pressing needs effectively.
In summary, option D best illustrates a local government grappling with scarcity by having to choose which damaged bridge to repair due to insufficient funds to address all the necessary repairs.
