What term describes the act of distributing limited resources among various uses?

The term that describes the act of distributing limited resources among various uses is resource allocation. This concept is central to economics and involves making decisions on how to best use scarce resources in order to satisfy the various wants and needs of individuals and society.

Resource allocation can occur at different levels, such as in households, businesses, and governments. Each of these entities must prioritize how to utilize their resources—like time, money, and materials—effectively. By weighing the benefits of different uses against their costs, individuals and organizations seek to optimize their limited resources in the face of competing demands.

In contrast, economic planning refers to the process where decisions about production and investment are guided by a central authority rather than through free-market mechanisms. Market distribution focuses on how goods and services are distributed in a market economy, which is different from the broader concept of how resources are allocated. Demand forecasting involves estimating future consumer demand for a product or service, which is more about predicting needs than directly dealing with the distribution of resources.