As baby-boomers reach retirement age and draw on Social Security and Medicare,
a. the Social Security Trust Fund will switch from running a deficit to a surplus.
b. unfunded promises included in the federal budget will decrease.
c. expenditures on these programs will increase the size of the federal debt.
d. the federal debt as a share of GDP will decrease.
C
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The ability of Intel to spread product development cost over a larger number of units of output arises from
A. constant returns to scale. B. minimum efficient scale. C. diseconomies of scale. D. economies of scale.
Which of the following would NOT be a reason for a shift in the labor demand curve?
A) a change in demand for the final product B) a change in labor productivity C) a change in the market wage rate D) a change in the price of a related input
The marginal tax rate is defined as
a. tax liability divided by taxable income. b. tax liability multiplied by taxable income. c. the change in tax liability divided by the change in taxable income. d. the change in tax liability minus the change in taxable income.
If the economy is in a recession, and the government raises taxes in an effort to balance the budget, the Keynesian model indicates the likely effect will be to
a. counteract the recession. b. prolong the recession and increase its severity. c. end the recession sooner. d. increase the level of real GDP.