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

The act of distributing limited resources among various uses is best described as resource allocation. This term specifically refers to the process of deciding how to use available resources, which are often scarce, to meet the needs and wants of individuals and society. Resource allocation involves making decisions about what to produce, how to produce, and for whom to produce, which are fundamental economic questions that all economies face.

While economic planning can involve resource allocation, it typically refers to a more comprehensive, coordinated approach that may encompass broader strategies and policies rather than the act of allocating resources alone. Market distribution generally pertains to how goods and services are distributed in a market economy based on supply and demand dynamics, which is a related but distinct concept. Demand forecasting focuses on predicting future consumer demand, helping businesses plan their production and inventory strategies but not inherently involving the allocation of resources.

In summary, resource allocation is a core concept in economics that captures the essence of how limited resources are divided among competing uses, making it the most accurate choice for the question.