📚 Learning Guide
Optimal and Sub-optimal Outcomes
easy

Optimal outcomes in economics are to resource allocation as sub-optimal outcomes are to which of the following?

Master this concept with our detailed explanation and step-by-step learning approach

Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
Learn Explanation
4
Explore Topic

Choose 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

Ready to Master More Topics?

Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.