The economic principle I examined was scarcity and how people make decisions because there’s always an opportunity cost. There are many examples of how this economic principle can be applied to the real world. While studying Water Scarcity, I found many examples of this principle. First, many countries especially Saudi Arabia are spending a lot of money on desalination tactics. This shows that they’re focused on helping people out with clean proper water, but they may want to cut back on other government programs like welfare, national defense, and education. With them cutting back on those programs and taking a small percentage from them, it would renovate and produce a good program for clean water with using desalination. Second, the state of California is the largest fruit and nut export in the whole United States. This demonstrates that they are using a majority of their water which they desperately need for drinking and other everyday usages for agriculture. Third, many countries just simply waste there water on many uses.This means that some poorer people have to drink dirty water and could possibly get malaria or some other disease. Overall, you can see that Water Scarcity is a huge deal and people have to make the right decisions in order to have less opportunity cost.
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