A current concern about Social Security is that
A) funds set aside by past generations to pay benefits for future generations are growing too rapidly and may trigger inflation.
B) promised benefit payouts are growing more rapidly than likely sources of revenues, indicating a future inability to keep the system operating.
C) continued political bickering between the president and Congress could lead to an end to any funding of the program.
D) the payroll taxes used to fund the program are being eliminated as part of an effort to generate employment increases, thus leaving the program bankrupt.
B
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You have been hired as an economic advisor for a developing country. You have been asked to focus on education as a means for the country's development
Explain to the prime minister how improving education and training can contribute to his country's economic growth, and why it is important for the government to take a proactive role in promoting education.
By providing free garbage removal, a community
a. discourages activities that produce detrimental externalities. b. encourages citizens to recycle items rather than throw them out. c. leads citizens to throw out more garbage than is socially optimal. d. None of the above is correct.
Valuation
What will be an ideal response?
If homeowners purchased a $250,000 home with a zero-down, interest-only mortgage, and the value of the home subsequently fell to $200,000, the homeowners' equity in the home would be approximately
A. $200,000. B. -$50,000. C. zero. D. $50,000.