High Schools Economics Q- 7-13

7. In economics, rational decisions occur when A. suppliers lower their prices to increase demand. B. marginal benefits of an action equal or exceed the marginal costs. C. a budget is used for spending and saving decisions. D. command economies answer the three basic economic questions. 8. Which of the following would discourage an act or serve as a negative incentive? A. Earning a paycheck B. Gambling winnings C. Bonuses D. Fines 9. Susan offers to trade her old iPad for Claudia's cell phone and Claudia accepts. Assuming both products work perfectly, we can conclude that A. Claudia is now happier than Susan. B. neither party has gained because the exchange was fraudulent. C. both people have gained because the exchange was voluntary and non-fraudulent. D. Susan places the same value on cell phones as she does for iPads. 10. How are economic questions answered in a command economy? A. By producers B. By consumers C. By central planners D. By supply and demand 11. Economic systems are established or adopted by nations to help determine answers to which of the following sets of questions relating to production? A. What, how, for whom to produce? B. When, how, where to produce? C. What, how, where to produce? D. When, how, which to produce? 12. Competition and free enterprise are most common in which type of economic system? A. Traditional B. Market C. Command D. Socialist 13. When government seeks to protect Americans from adverse economic events such as layoffs and illnesses, it is trying to achieve the economic goal of A. economic freedom B. economic efficiency C. economic growth D. economic security