Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
The allocation of resources that maximizes total welfare
B
The situation where all resources are wasted
C
The point where consumer demand exceeds supply
D
The distribution of goods that benefits only the wealthy
Understanding the Answer
Let's break down why this is correct
Answer
An optimal outcome in economics is when resources are used in the most efficient way possible, resulting in the highest possible benefit for everyone involved. This means that goods and services are produced and distributed in a manner that maximizes satisfaction and minimizes waste. For example, if a farmer grows just the right amount of crops to meet the needs of the community without overproducing, this is an optimal outcome because it provides food for everyone while also ensuring the farmer does not waste resources. In contrast, a sub-optimal outcome occurs when resources are not used effectively, leading to wasted opportunities or unmet needs. Therefore, achieving optimal outcomes is essential for promoting overall economic well-being and growth.
Detailed Explanation
An optimal outcome means using resources in the best way. Other options are incorrect because Some might think wasting resources is okay; It's a common mistake to think high demand is good.
Key Concepts
optimal outcomes
Topic
Optimal and Sub-optimal Outcomes
Difficulty
easy level question
Cognitive Level
understand
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