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The principle indicating that resource allocation can be optimized through comparative advantages is known as comparative advantage theory. This theory suggests that individuals, businesses, or countries can achieve greater efficiency and increased total output when they specialize in the production of goods and services for which they have the lowest opportunity cost relative to others. By focusing on these areas of specific expertise or efficiency, it allows for the most productive use of resources, leading to enhanced economic performance overall.

In the context of trade and specialization, comparative advantage explains how even if one entity is less efficient in producing all goods compared to another, there is still a beneficial trade-off that can be achieved. Therefore, through the exchange of goods and services based on these advantages, both parties can improve their overall economic well-being.

The other terms relate to different economic concepts. The scarcity principle focuses on the limitation of resources and the need to make choices, opportunity cost involves the value of the next best alternative forgone when making a decision, and transaction cost economics relates to the costs associated with economic exchanges. While these concepts are important in economics, they do not specifically address the optimization of resource allocation through the specialization highlighted in comparative advantage theory.