When the Social Security system enters its deficit years and the bonds held in the trust fund are drawn down,
a. overall taxes will be reduced as the trust funds are used to pay benefits to retirees.
b. the payroll taxes used to finance Social Security benefits can be reduced because the trust funds will be sufficient to pay the retirement benefits of the baby boom generation.
c. taxes will have to be raised (or additional funds will have to be borrowed) in order to redeem the bonds held in the trust fund.
d. income taxes will have to be reduced in order to keep the revenues and expenditures of the Social Security system in balance.
C
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The natural unemployment rate is the result of
A) job search and job rationing. B) insufficient demand for labor. C) the Lucas Wedge. D) the Okun Ga
In the figure above, imposing a tax on the sellers of the product results in a division in which
A) all of the tax is paid by the buyers. B) all of the tax is paid by the sellers. C) the buyers and sellers pay the same amount. D) neither the buyers nor the sellers pay the tax.
If an upstream monopoly and a downstream monopoly vertically integrate into a profit-maximizing monopoly, then the total amount of deadweight loss in the industry
A) will increase. B) will decrease. C) will remain unchanged. D) cannot be determined.
A closed shop
A. is an arrangement unions have with employers limiting employment to union members only. B. is one in which union workers cannot be hired. C. allows a firm to close its doors at will. D. is legal in the United States.