Registered Environmental Manager (REM) Practice Exam

What does economic water scarcity indicate?

1. Insufficient physical water due to climate conditions

2. Sufficient natural water but limited human access

3. Excessive water management infrastructure in place

4. High demand for water leading to depletion

The correct answer is: Sufficient natural water but limited human access

Economic water scarcity occurs when there are sufficient natural water resources available, but social, institutional, or financial barriers prevent access to these resources. This situation often arises in developing regions where infrastructure for water distribution is inadequate, or where populations lack the economic means to access or manage water effectively. In such contexts, even though there may be an abundance of rainfall or surface water sources, the necessary infrastructure—like pipelines, pumps, or treatment facilities—is either nonexistent or insufficient. Additionally, poverty and lack of investment can further limit access to water, meaning people may be surrounded by water resources but unable to utilize them adequately. The other choices point to different concepts. For instance, insufficient physical water due to climate conditions relates to scenarios where drought or unfavorable weather patterns reduce water availability. Excessive water management infrastructure would imply an overabundance of systems that may not be necessary or effectively utilized. High demand leading to depletion suggests a situation where the usage of water exceeds available supplies, indicating a different type of scarcity than economic. The essence of economic water scarcity lies in access and socio-economic challenges rather than the actual physical availability of water.