Scarcity in economics refers to the limitation of __________, requiring individuals and societies to make choices about resource allocation.

Scarcity in economics refers to the limitation of resources, such as money, time, and materials. Because these resources are not unlimited, individuals and societies must make choices about how to use them most effectively. For example, if a family has a limited budget, they might have to decide between buying groceries or saving for a vacation. This choice shows that scarcity forces people to prioritize their needs and wants, leading to trade-offs. Understanding scarcity helps us appreciate the importance of making informed decisions about resource allocation.