ALLOCATION: The process of distributing resources for the production of goods and services, and of distributing goods and services for consumption by households. This process of allocation is essential to an economy's effort to address the problem of scarcity. An allocation is efficient if the resources, goods, and services are distributed according to the economy's highest valued uses. See also | resources | production | goods | services | efficiency | satisfaction | consumption | scarcity | government | market | business | consumer | voluntary exchange | involuntary exchange | regulation | first estate | second estate | third estate |
