Final answer:
Resources must be allocated between competing uses because they are limited. Scarcity is the condition of not being able to have all of the goods and services one wants because wants exceed what can be made from all available resources at any given time. People must make choices about how to allocate resources for the maximum benefit of society.
Step-by-step explanation:
Resources must be allocated between competing uses because they are limited. Scarcity is the condition in which there are not enough resources available to produce everything that individuals demand. Since wants and needs exceed available resources, people must make choices about how to allocate resources. This is necessary for the maximum benefit of society.