Final answer:
Medical Utility is defined as the allocation of scarce resources to those with the best prognosis, often considered during discussions on resource allocation in healthcare.
Step-by-step explanation:
The term that is defined as the allocation of scarce resources to those with the best prognosis is Medical Utility. This concept is part of a larger discussion about how societies make decisions on resource allocation in sectors like healthcare and education.In the context given by the productivity possibilities frontier, a society must decide how to allocate its limited resources between competing needs such as healthcare and education. If the society chooses to allocate more towards healthcare, it might be following the principle of medical utility by giving preference to treatments or services that yield the best outcomes.