A government is faced with a shortage of medical supplies during a pandemic. It must decide how to allocate these limited resources among hospitals, research for a vaccine, and public health awareness campaigns. Which category best represents the economic principle illustrated by this scenario?

The situation described shows the economic principle of scarcity, which means that there are not enough resources to meet all the needs and wants of a society. In this case, the government has limited medical supplies and must choose how to use them effectively. Allocating resources to hospitals helps treat patients, while investing in vaccine research could save lives in the long run, and funding public health campaigns can prevent the spread of the disease. Each choice has benefits and trade-offs, illustrating the importance of prioritizing how to use scarce resources wisely. For example, if the government decides to give more supplies to hospitals, it may delay vaccine research, which could be crucial for future outbreaks.