Allocation refers to the process of distributing resources, such as time, money, or materials, among various projects or departments. This ensures that each area receives the necessary support to function effectively and achieve its goals. Proper allocation helps organizations optimize their resources and improve overall efficiency. In economics, allocation can also refer to how goods and services are distributed in a market. Factors like supply and demand influence this process, determining how resources are assigned to meet the needs of consumers. Effective allocation is crucial for maintaining balance and promoting economic growth within a society.