Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
An outcome where resources are utilized efficiently
B
An outcome that fails to maximize total welfare
C
An outcome that reflects perfect market conditions
D
An outcome where all participants are satisfied
Understanding the Answer
Let's break down why this is correct
Answer
A sub-optimal outcome in economics occurs when resources are not used in the best possible way, leading to less efficient results. This means that the economy could produce more goods or services, or better meet people's needs, if resources were allocated differently. For example, if a factory is producing too many toys and not enough bicycles, it might be missing out on sales and profits from bicycles, which people actually want more at that time. In this case, the factory is not operating at its best, which is what we call a sub-optimal outcome. Essentially, it highlights a situation where improvements can be made to achieve better results for everyone involved.
Detailed Explanation
A sub-optimal outcome means we are not getting the best result possible. Other options are incorrect because This choice suggests that using resources well means the outcome is always good; This option implies that perfect market conditions guarantee a good outcome.
Key Concepts
sub-optimal outcomes
Topic
Optimal and Sub-optimal Outcomes
Difficulty
easy level question
Cognitive Level
understand
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