What is the term for the process of allocating resources to achieve the highest utility?

The term for the process of allocating resources to achieve the highest utility is utility maximization. This concept is grounded in the theoretical framework of microeconomics where individuals and firms make decisions to allocate their limited resources in a way that yields the greatest possible satisfaction or benefit.

Utility maximization involves assessing different choices based on the satisfaction or "utility" they provide and ultimately selecting the combination of goods and services that provides the highest level of satisfaction for the resources available. This principle is fundamental to consumer behavior and decision-making in economics.

Capital formation refers to the process of building up the stock of real capital in an economy, which is not directly related to utility. Resource distribution is a broader term that encompasses the allocation of various resources but does not specifically emphasize the goal of maximizing utility. Wealth aggregation refers to the accumulation of resources over time by various individuals or entities, which again, does not focus on the process of achieving the highest utility through resource allocation.