A city is faced with a sudden outbreak of a virus, and its healthcare resources are limited. The city must decide whether to allocate funds to increase hospital capacity or to invest in a public health campaign to educate the population on preventive measures. What fundamental economic choice is the city making, and how does this reflect the concept of trade-offs in resource allocation?

The city is making a fundamental economic choice about how to allocate its limited resources between two important needs: increasing hospital capacity and funding a public health campaign. This decision reflects the concept of trade-offs, which means that choosing one option often comes at the expense of another. For example, if the city decides to spend more money on hospital beds, it might not have enough funds left to educate people about washing hands or wearing masks, which could help prevent the virus from spreading. The trade-off is essentially about balancing immediate healthcare needs against long-term prevention strategies. Ultimately, the choice the city makes will impact how well it can manage the outbreak and protect its residents.