The money for Social Security payments to current retirees comes from
a. payroll taxes collected from those retirees when they were working.
b. income taxes collected from the current working population.
c. payroll taxes collected from the current working population.
d. only the interest earned now by the government on the invested Social Security trust fund.
c
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Which of the following statements is false?
A. If a negative externality exists, the market output is greater than the socially optimal output. B. If a positive externality exists, the market output is less than the socially optimal output. C. If there are no external costs or benefits, then it follows that marginal private costs equal marginal social costs and marginal private benefits equal marginal social benefits. D. When a positive externality exists, marginal social benefits are greater than marginal private benefits. E. none of the above
When a firm increased its output by one unit, its AC decreased. This implies that
A) MC < AC. B) MC = AC. C) MC < AFC. D) the law of diminishing returns has not yet taken effect.
Suppose that macroeconomic forecasters predict that the economy will be expanding in the near future. How might managers use this information?
What will be an ideal response?
A newspaper headline asserts: "Rising Demand Pushes Up Housing Prices." This headline
A) incorrectly implies that the demand for housing can change, whereas in fact only the quantity of housing demanded can change. B) incorrectly implies that the price of housing will rise when demand increases. C) incorrectly implies that more housing will be demanded at higher prices. D) correctly implies that an increase in demand will increase the market clearing price.