Yelm High School 12 SOCIAL RP 505 Chapter 1 Self-Test Quiz 1)As a result of the Affordable Care Act passed in 2010: A)           insurance companies are allowed to discriminate against those with medical conditions that are too expensive to treat

Yelm High School 12

SOCIAL

RP 505 Chapter 1 Self-Test Quiz

1)As a result of the Affordable Care Act passed in 2010:

A)           insurance companies are allowed to discriminate against those with medical conditions that are too expensive to treat.

B)            individuals who cannot afford health insurance have all been enrolled in Medicaid.

C)            individuals who can afford health insurance must purchase it or pay a penalty.

D)           the government is no longer attempting to control the costs of providing medical care.

2.            The goal of public finance is to:

A)           understand the proper role of corporations in the economy.

B)            understand the proper role of the government in the economy.

C)            determine the best way to increase government's role in the economy.

D)           determine the best way to decrease government's role in the economy.

3.            The goal of public economics, or public finance, is to answer which question?

A)           How might the government intervene in the economy and what are the likely effects?

B)            Why do profit-maximizing firms attempt to set marginal revenue equal to marginal cost?

C)            How are the terms of trade determined when countries choose to engage in international trade?

D)           What are the goals and tools of macroeconomic policy?

4.            Government intervenes in a market economy to:

A)           create externalities.

B)            prevent competition.

C)            enhance economic efficiency.

D)           achieve perfect income equality.

5.            Suppose Juan values a slice of pizza at $1.50, but the pizza shop is unwilling to sell a slice of pizza for less than $2.00. These values imply that:

A)           it is efficient for the shop to sell a slice of pizza to Juan for $1.50.

B)            it is efficient for the shop to sell a slice of pizza Juan for $2.00.

C)            the shop needs to produce more efficiently in order to lower the price.

D)           it is not efficient for the shop to sell a slice of pizza to Juan.

6.            Suppose Ali values a slice of pizza at $1.50, but the pizza shop is unwilling to sell a slice of pizza for less than $1.00. These values imply that it is efficient for the shop to sell a slice of pizza to Ali for any price:

A)           greater than or equal to $1.50.

B)            greater than or equal to $1.00 and less than or equal to $1.50.

C)            less than or equal to $1.00.

D)           less than or equal to $1.00 and greater than or equal to $1.50.

7.            Suppose a student values a textbook at $50, and the publisher is unwilling to sell the textbook at a price lower than $30. What price will lead to an efficient transaction between the student and publisher?

A)           a price of $0

B)            any price greater than $0 and less than $30

C)            any price greater than or equal to $30 and less than or equal to $50

D)           any price greater than $50

8.            Suppose a consumer values a certain 19-inch television set at $150, and the seller is unwilling to sell the set for less than $200. These values imply that:

A)           it is efficient for the seller to charge a price of $0.

B)            it is efficient for the seller to charge any price greater than $0 and less than $150.

C)            it is efficient for the seller to charge any price greater than or equal to $150 and less than or equal to $200.

D)           it is not efficient for a transaction to take place. D

9.            Suppose you hear someone argue that the proper role of government is to increase the size of the pie. Which justification for government intervention in the economy is this person referring to?

A)           increasing equality in the economy

B)            promoting social justice

C)            improving efficiency

D)           preventing competition