|
|
ECONOMICS: A social science that studies the allocation of limited resources to the production of goods and services used to satisfy consumer's unlimited wants and needs. Five notable phrases contained in this definition that need further study are: (1) social science, (2) allocation, (3) limited resources, (4) production, and (5) unlimited wants and needs.
Visit the GLOSS*arama
|
|
|
|
                           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, 2000-2024. [Accessed: October 10, 2024].
Check Out These Related Terms... | | |
Or For A Little Background... | | | | | | | | | | | | |
And For Further Study... | | | | | | | | | | | | | |
Search Again?
Back to the WEB*pedia
|
|
|
BEIGE MUNDORTLE
[What's This?]
Today, you are likely to spend a great deal of time strolling around a discount warehouse buying club hoping to buy either hand lotion, a big bottle of hand lotion or a lighted magnifying glass. Be on the lookout for the happiest person in the room.
Your Complete Scope
This isn't me! What am I?
|
|
|
The New York Stock Exchange was established by a group of investors in New York City in 1817 under a buttonwood tree at the end of a little road named Wall Street.
|
|
|
"Every generation of Americans needs to know that freedom exists not in doing what we like, but in having the right to do what we ought. " -- Pope John Paul II
|
|
SOFFEX
Swiss Options and Financial Futures Exchange
|
|
|
Tell us what you think about AmosWEB. Like what you see? Have suggestions for improvements? Let us know. Click the User Feedback link.
User Feedback
|
|
