In economics, the process of distributing limited resources among various uses in the face of scarcity is known as ____. This concept is essential for understanding how societies prioritize their needs and desires.

In economics, the process of distributing limited resources among various uses in the face of scarcity is known as resource allocation. This concept is crucial because resources like money, time, and materials are not unlimited, and societies must decide how to use them effectively. For example, if a school has a limited budget, it must choose whether to spend money on new computers or sports equipment, which means prioritizing one need over another. By understanding resource allocation, we can see how choices are made and how they affect people's lives. This helps us grasp the trade-offs involved in every decision we make as a society.