Share This Article:

Economic Definition of allocation. Defined.

Offline Version: PDF

Term allocation Definition: 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.

 

« agrarian | allocation effect »

Permalink: http://glossary.econguru.com/economic-term/allocation

Alphabetical Reference to Over 2,000 Economic Terms