The correct answer is C) distribution.
Dividing up scarce resources refers to resource distribution.
Governments or organizations must know how to distribute resources during tough economic times, knowing that resources are scarce. It could be land, money, natural resources or raw materials. If the resource is limited, people have to be smart about how they distribute them for everybody to have what they need to produce. The mistake they need to avoid is the Unequal resource distribution because it could affect the many.