In a scenario where a country faces a severe drought, which of the following responses best illustrates the principle of scarcity in resource allocation?

In a drought, water becomes a limited resource because there is not enough for everyone to use as they normally would. This situation forces the country to decide how to allocate the available water, which is where the principle of scarcity comes into play. For example, if a government decides to prioritize water for agriculture to ensure food production over water for swimming pools or lawns, it is making a choice based on the limited availability of water. This decision highlights the need to use resources wisely and focus on the most important needs first. By recognizing scarcity, the country can better manage its resources to support the people and economy during tough times.