Current tax rates are insufficient to finance the benefits promised by both the Social Security and Medicare programs. Are these unfunded promises surprising according to economic theory?
What will be an ideal response?
No, the unfunded promises reflect the shortsighted nature of the political process.
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Oil price increases encourage oil conservation
Indicate whether the statement is true or false
In the figure above, the total revenue of a perfectly price-discriminating monopolist at the profit-maximizing output is equal to the area of
A) 0aij. B) 0dgh. C) aci. D) obeij.
Which of the following is an effect of a minimum wage law that establishes a wage floor above the current market clearing? wage?
A) surplus labor, or unemployment
B) a decrease in the market clearing wage
C) a decrease in the quantity of labor supplied
D) an increase in the quantity of labor supplied
Refer to the tables below. If Germany and the United States engage in trade, the mutually-beneficial terms of trade will be between:
Autos and chemicals are in million of units in the following production possibilities tables:
A. 3 and 4 units of autos for 1 unit of chemicals
B. 2 and 4 units of autos for 1 unit of chemicals
C. 2 and 4 units of chemicals for 1 unit of autos
D. 0.33 and 0.5 units of autos for 1 unit of chemicals