Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Inefficient resource use
B
Perfect competition
C
Maximum consumer surplus
D
Equal distribution of wealth
Understanding the Answer
Let's break down why this is correct
Answer
In economics, optimal outcomes refer to the best possible use of resources, where they are allocated in a way that maximizes benefits and efficiency. On the other hand, sub-optimal outcomes occur when resources are not used effectively, leading to wasted potential and lower overall benefits. For example, if a farmer has a piece of land that could grow either corn or soybeans but chooses to grow only one crop poorly, that would be a sub-optimal outcome because they are not maximizing their land's productivity. Thus, just as optimal outcomes focus on efficient resource allocation, sub-optimal outcomes reflect inefficiencies that lead to less desirable results. This difference highlights the importance of making informed decisions to achieve the best economic outcomes.
Detailed Explanation
When resources are not used well, we get sub-optimal outcomes. Other options are incorrect because Some might think perfect competition means everything is used well; Maximum consumer surplus means buyers get the best deal.
Key Concepts
Optimal and sub-optimal outcomes
Resource allocation
Market efficiency
Topic
Optimal and Sub-optimal Outcomes
Difficulty
easy level question
Cognitive Level
understand
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