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Which situation best illustrates the problem of scarcity? A. A local government forces all city employees to take a pay cut of 5 percent of their current salary. B. A local government uses the money from a tax levy to build a new school and add lanes to a highway. C. A local government has to choose between building a new school and adding lanes to a busy highway. D. A local government decides to provide free health care for all employees and their families.
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