In economics, which of the following best defines optimal resource allocation?

Optimal resource allocation in economics means using resources, like time, money, and materials, in the best possible way to meet people's needs and wants. This involves making sure that resources are distributed where they can create the most value or benefit. For example, if a farmer has a limited amount of land, optimal allocation would mean planting the crops that will give the highest yield or profit, rather than wasting space on less valuable crops. When resources are allocated optimally, it leads to a situation where no one can be made better off without making someone else worse off, which is known as Pareto efficiency. In contrast, sub-optimal outcomes occur when resources are wasted or not used effectively, leading to less overall satisfaction or economic benefit.