Allocation of Resources refers to the central subject of economics involving how scarce factors of production are distributed among producers and how scarce goods are distributed among consumers.
Economic goods are commodities and products that require effort and resources, and are available at a price in the market. They are distinct from freely available goods or those with no utility.
A method for limiting the purchase or usage of an item when the quantity demanded exceeds the quantity available at a specific price. Common during crises, rationing ensures fair distribution of scarce resources.
Scarcity refers to the limited nature of a resource or commodity, while scarcity value is the portion of a commodity's value that is attributable to its limited availability. Scarcity value arises when a good's demand surpasses its available supply.
The basic economic principle that most resources, goods, and services are available in limited quantities, requiring allocation based on willingness to pay the price set by supply and demand in a market economy.
