Final answer:
The statement is true as resource allocation is influenced by both timing and total supply, all under the umbrella of scarcity which dictates that resources are limited and choices must be made.
Step-by-step explanation:
The statement, "The amount of resources that can be allocated depends on the timing of the allocation as well as on the total supply of resources available for the allocation," is true. Resource allocation is significantly influenced by the timing of allocation and the total supply of resources. This is because scarcity implies that resources are limited, and not all wants can be satisfied at any given time.
As outlined by the universal generalizations, consumers play a key role in deciding how resources are allocated and what is produced. In an economy, wealth is generated through the circular flow of economic activity, which is contingent on the choices consumers and producers make regarding the use of scarce resources. The concept of the R/P ratio further illustrates the impact of the availability and usage rate on how long resources can last.
Scarcity forces societies to make choices as they cannot meet all wants and needs simultaneously. Scarcity ensures that making a choice in favor of one good or service inherently means forgoing another. The limited nature of resources necessitates economic decision-making, where trade-offs and opportunity costs are fundamental considerations.