A funded pension plan _____
a. pays current beneficiaries from the contributions of current contributors
b. pays current beneficiaries from the contributions of new contributors
c. maintains assets equal to the present value of future liabilities
d. is functionally equivalent to a pay-as-you-go system, except for the pension plan is not compulsory
c
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The falling phase of a business cycle measured by a decrease in real GDP is called:
A) hyperinflation. B) expansion. C) recession. D) peak.
If a good is price inelastic, a decrease in price will:
A) decrease total revenue. B) increase total revenue. C) not affect income. D) none of the above.
Real-wage rigidity in the Keynesian efficiency wage diagram of the labor market is depicted by
A) a vertical labor supply curve at the efficient level of employment, B) a vertical labor demand curve at the efficient level of employment. C) a horizontal line at the efficiency wage. D) a steep, positively sloped labor supply curve depicting various efficiency wages at various employment levels.
According to Rosenberg (2004), the U.S. economy between the Civil War and World War II was relatively poor in which of its productive resources?
(a) Land (b) Labor (c) Capital (d) Entrepreneurial talent