Final answer:
Scarcity is the issue that results from limited resources and unlimited wants. Society must make choices and allocate resources efficiently to address scarcity.
Step-by-step explanation:
Scarcity is the issue that results from the combination of limited resources and unlimited wants. Scarcity occurs when there are not enough resources to satisfy all the wants and needs of individuals and society. This forces society to make choices and allocate resources in the most efficient way possible. For example, let's say there is a limited supply of water in a desert community. The residents have unlimited wants for water to drink, bathe, and irrigate crops.
However, due to the limited resources (water), the community has to prioritize and allocate the available water for drinking purposes. This means that there may not be enough water for other wants like bathing or crop irrigation. Therefore, scarcity leads to the need for allocation, where society must decide how to distribute and use limited resources to satisfy the most pressing wants and needs.