It stemmed from the annexation of the Republic of Texas by the U.S. in 1845 and from a dispute over whether Texas ended at the Nueces River (the Mexican claim) or the Rio Grande (the U.S. claim).
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question of allocation arises because society faces the fundamental problem of scarcity--wants and needs are unlimited, but resources are limited. Because society lacks sufficient resources to produce every good that every person desires, society must decide who receives the goods and services produced.