Federal, state, and local governments face the problem of scarcity every day. Which of the following newspaper headlines illustrates a government facing the problem of scarcity?

Scarcity occurs when resources are limited compared with people’s wants. The headline about Southeast cities battling over water usage rights describes governments competing for a limited supply of river water, so it illustrates scarcity. The other headlines describe high demand for concert tickets, tourism, or nurses, but do not specifically show governments allocating scarce resources.

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