A community has to decide how to allocate its limited budget among education, healthcare, and infrastructure. Which category does this decision-making process illustrate?

The decision-making process in this situation illustrates the concept of economic scarcity, which means that resources are limited and cannot meet all wants and needs. Since the community has a limited budget, it must choose how to spend its money wisely among education, healthcare, and infrastructure. Each of these areas is important, but the community cannot fund them all equally, so they must consider which will have the most significant impact on their residents. For example, if the community decides to invest more in education, it may mean less funding for healthcare or infrastructure improvements. This choice shows how scarcity forces communities to prioritize their spending based on what they believe will benefit them the most.