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BUDGET: A statement of the financial position of an entity--especially household, business, or government--based on estimates of anticipated revenues and expenditures. A budget is balanced if the revenues and expenditures are equal. A budget deficit arises if expenditures exceed revenues and a budget surplus exists if revenues are greater than expenditures.
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                           RESOURCE ALLOCATION: The process of distributing resources for the production of goods and services which are then distributed for the satisfaction of wants and needs and human consumption. This is also commonly referred to by the single word "allocation." The resource allocation process is an essential part of an economy's effort to address the problem of scarcity Given that world is rampant with scarcity (unlimited wants and needs, but limited resources), not every want and need can be satisfied with available resources. Choices have to be made. Some wants and needs are satisfied, some are not. These choices, these decisions are the resource allocation process.EfficiencyAn efficient resource allocation exists if society has achieved the highest possible level of satisfaction of wants and needs from the available resources AND resources cannot be allocated differently to achieve any greater satisfaction.Three QuestionsThis whole resource allocation process is frequently viewed as answering three key questions:- What goods and services are produced with the available resources?
- How are available resources combined in the production of goods and services?
- For Whom are the goods and services produced?
Markets and GovernmentsResource allocation is accomplished through both voluntary market exchanges and involuntary government-imposed actions. Markets accomplish the process using prices, which create incentives for both producers and consumers. Governments address this process using regulations, taxes, and spending, which also create incentives among members of society.Both methods are necessary in a modern economy. Many resource allocation decisions are best made through markets, but some resource allocation decisions are better addressed using the coercive powers of government.
Recommended Citation:RESOURCE ALLOCATION, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2019. [Accessed: September 15, 2019].
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Today, you are likely to spend a great deal of time watching infomercials trying to buy either a video game player or an AC adapter that won't fry your computer. Be on the lookout for telephone calls from former employers.
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The wealthy industrialist, Andrew Carnegie, was once removed from a London tram because he lacked the money needed for the fare.
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