At the present time Social Security beneficiaries are limited in the amount of income they can earn and still receive full benefits. Should this limitation be abolished? Justify your answer
What will be an ideal response?
The answer will depend on whether the writer views the program as primarily an insurance program or primarily a public assistance program. If one believes that Social Security should be as originally intended, an insurance program, the benefits should be paid to those who are eligible as a result of paying into the program and having achieved the requisite age status regardless of how much they presently earn. Viewed in this way, the program should act much as a private pension program where benefits depend on factors other than one’s current income from other sources.
On the other hand, Social Security also is intended to provide income maintenance, a sort of safety net, for the elderly, disabled, widows, and others who may not have the ability to earn enough income for themselves. Viewed from this perspective, one could argue that it is primarily a public assistance program and should be treated as such by transferring income from those who can afford to pay to those who cannot. In this sense, one would not pay benefits to those who earned above some limit; that is, those who do not have a defined need.
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The market clearing price of a good is
A) the price at which there is at least some of the good available for everyone. B) the price at which there is no surplus and no shortage. C) the price that consumers prefer. D) the price that producers prefer.
In monopolistically competitive markets, economic profits ____, and ____ shifts the demand curve of the remaining firms to the ____
a. signal some remaining firms to exit; exit; right b. signal some remaining firms to exit; exit; left c. signal new firms to enter; entry; left d. signal new firms to enter; entry; right
Which of the following statements is true?
A. The ECB's success in controlling reserves by paying interest on them has led the Fed to do the same. B. The Fed's redesign of its procedures for lending to banks was the model for the ECB's marginal lending facility. C. The ECB's marginal lending facility was the model for the Fed's redesign of its procedures for lending to banks. D. The ECB's weekly auctions include only a few of the largest banks in Europe.
Between 1972 and 1999, the majority of loans to HIPC countries went to regimes considered "not free," and between 1985 and 1995, to places that were considered "corrupt" by international organizations
Indicate whether the statement is true or false