How does limited resource allocation affect the provision of public goods in an economy that relies heavily on factors of production?

Limited resource allocation affects the provision of public goods because it means there are not enough resources to meet everyone's needs. Public goods, like parks, streetlights, or clean air, require funding and materials to create and maintain. When resources like money, labor, or materials are scarce, governments may have to prioritize which public goods to provide, leading to fewer services for the community. For example, if a city has a limited budget, it might decide to build a new park instead of repairing existing roads, which could leave some needs unmet. This trade-off shows how limited resources can impact the overall well-being of the economy and its citizens.