What is resource allocation in economics?

In economics, resource allocation is the method by which resources are distributed to the people who want them. To unlock this lesson you must be a Study.com Member. What is Allocation in Economics? Allocation in economics refers to how resources are distributed to the people who desire the resource.

What is allocational efficiency?

Allocational efficiency is the efficient allocation of resources that leads to maximum overall satisfaction in the economy. Allocative efficiency ensures that resources are used so that their marginal benefit to society is equal to their marginal cost.

What is allocation economics?

Allocation is defined as how resources are allotted to the people who want them. This is easy for plentiful resources but becomes considerably more complicated as the resource becomes more scarce. What are the types of allocation economics? There are many different types of allocation methods in economics.