Social Security is a pure transfer program because
A. the government subsidizes the medical bill of the poor.
B. current payroll taxes are used to pay the eligible retirees.
C. it transfers funds from current workers to the poor.
D. the government transfers funds from middle-income workers to welfare recipients.
Answer: B
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When the current state of the economy is such that Real GDP is greater than Natural Real GDP, the economy is in a(n) ____________________ gap. In this situation, the (actual) unemployment rate is ___________ than the natural unemployment rate, and there is a ________________ in the labor market
A) recessionary; greater; shortage B) inflationary; less; shortage C) inflationary; greater; surplus D) recessionary; greater; surplus E) recessionary; less; shortage
Refer to the following graph. The price of capital (r) is $20.
What is the price of labor (w)?
A. $30 B. $35 C. $25 D. $20 E. none of the above
Bob's Barber Shop cut 3,000 heads of hair in 2016 and 3,100 in 2017. The price of a haircut was $7 in 2016 and $8 in 2017. If 2016 is the base year, what was Bob's contribution to real GDP in 2017?
A. $21,000 B. $24,800 C. $21,700 D. $24,000
If Tiger Toys faces a demand curve of P = 85 ? 0.25Q and a MC = ATC = 20, then the markup would be
A. $20.00. B. $52.50. C. $32.50. D. $65.00.