Describe the problem demographic change presents for Social Security.
What will be an ideal response?
As the population ages, the old-age dependency ratio is expected to rise. This means that the number of elderly people per younger worker will increase. Unless taxes are increased, benefits reduced, an alternative source of income found, or the return on the trust fund increased, Social Security income will fall below expenditures for a long period of time, eventually exhausting the Social Security trust fund.
You might also like to view...
Each point on the demand curve reflects
A) all the wants of a given household. B) the highest price consumers are willing and able to pay for that particular unit of a good. C) the highest price sellers will accept for all units they are producing. D) the lowest-cost technology available to produce a good.
Refer to the information above. In which period does gross investment reach its peak?
A) 1 B) 2 C) 3 D) 4 E) 5
Paper Pushers Inc. hires workers in a competitive labor market. Apart from labor, the company has no other variable inputs. The company's hourly output varies with the number of workers hired, as shown in the table. WorkersPages/hour0014027531054125514061507155 If each page sells for $2 and the market wage is $15 per hour, then this firm will hire ________ workers per hour.
A. 4 B. 6 C. 5 D. 7
What would most likely happen to the price of cable TV in Sydney, NE, when the single cable TV firm now has a new competitor coming into town?
A. Prices would decrease. B. Prices would stay the same. C. Prices would rise. D. Prices would be internalized.