Social Goals and Market Efficiency Quiz

What is a price ceiling?

• A limit on how low a price can go

• A limit on how high a price can go

• A type of loan

• A payment to farmers

What does minimum wage refer to?

• The average wage in a state

• The lowest amount a worker can earn

• The highest amount a worker can earn

• The wage for government jobs

What is a price floor?

• A government subsidy

• A type of tax

• A limit on how low a price can go

• A limit on how high a price can go

What is a target price?

• A price that changes daily

• A price that is always the same

• A price that farmers aim to receive

• A price set by the government

What is a nonrecourse loan?

• A loan that does not require repayment

• A loan for buying a house

• A loan that must be paid back

• A loan with high interest

What is a deficiency payment?

• A payment to cover losses

• A payment for rent

• A payment for services rendered

• A payment for taxes

What does arbitrarily mean?

• Carefully planned

• Based on a clear rule

• Randomly or without reason

• Based on a law

What happens when the minimum wage increases?

• All workers earn more money

• Some businesses may hire fewer workers

• More jobs are created

• Prices of goods decrease

What is one goal of government policies?

• To eliminate jobs

• To achieve social goals

• To reduce taxes

• To make prices higher

What can happen when the government interferes with the market?

• It has no effect

• It always lowers prices

• It can create conflicts between goals

• It can help everyone