There are never enough goods and services to satisfy all wants and needs- this best explains that allocation decisions necessary.
Option: C
Explanation:
Resources are the thing that every human being needs. But it is impossible to get every required resource in our desired place like coal is only found in some selective region of world. But it is a very important resource to everyone. In India petroleum is only found in Mumbai high, Digboi (Assam), Ankleswar etc.
So for the equal distribution of resource to everyone resource allocation is necessary so that everyone can get the benefit of resource. Nowhere in the world have enough goods and services that satisfy all wants and needs. So the area full of resources will export it to the area which is lacking of it and will receive the other resources that is abundant there but scarce here.