Question

producers help allocate scarce resources by seeking opportunities to * 1 point
o earn profits
o increase incentives
o lower costs
o market products

an example of underutilization is producing * 1 point
o as many muffins and widescreen televisions as the economy is capable of making
o fewer muffins and widescreen televisions than the economy is capable of making
o more muffins and fewer widescreen televisions
o fewer muffins and more widescreen televisions

government programs that protect people from economic hardship are called a * 1 point
o free rider
o positive externality
o public safety net
o public subsidy

Explanation:

1. Producers allocate scarce resources by seeking profit - maximizing opportunities as profit is a key driver in resource - allocation decisions in a market economy.
2. Underutilization occurs when an economy produces less than its potential output. Producing fewer goods than the economy is capable of making is an example of underutilization.
3. Government programs that protect people from economic hardship are known as the public safety net, which includes programs like welfare, unemployment benefits etc.

Answer:

1. earn profits
2. fewer muffins and widescreen televisions than the economy is capable of making
3. public safety net