A city is faced with a decision to allocate its budget between building a new school, repairing roads, and enhancing public parks. Which category does this scenario most clearly illustrate regarding scarcity?

This scenario clearly illustrates the concept of scarcity, which means that there are limited resources available to meet various needs and wants. The city has a certain amount of money to spend, but it cannot afford to do everything at once, such as building a new school, repairing roads, and enhancing public parks. Because the funds are limited, the city must make tough choices about which projects to prioritize based on their importance and the needs of the community. For example, if the city decides to allocate more money to repairing roads, it may have to delay the construction of the new school. This situation shows that scarcity forces decision-makers to weigh the benefits of different options and choose the ones that will best serve the people.