Each year, the Medicare trustees issue a report on the health of the program. According to the 2016 report, which of the following statements is true?
a. The net present value of future Medicare obligations that are currently unfunded will require Congress to appropriate funds beyond current law approaching $60 trillion dollars, over 300 percent of current GDP.
b. The Medicare Hospital Trust fund provides permanent funding for Part A spending.
c. Based on historical evidence, hospital productivity is expected to increase substantially in the future, lowering Part A spending substantially.
d. Medicare spending has been holding steady at approximately one percent of GDP since 1975 and is expected to remain below 3 percent of GDP over the next decade.
e. Fortunately, Medicare's trustees have historically overstated the system's future revenue shortfalls.
a. The net present value of future Medicare obligations that are currently unfunded will require Congress to appropriate funds beyond current law approaching $60 trillion dollars, over 300 percent of current GDP.
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Advances in productivity increase supply because they might
A) increase the price expected in the future. B) decrease the cost of production. C) increase the number of firms producing the good. D) raise the prices of resources used to produce the good. E) decrease the number of goods available.
When the actual real interest rate is less than the equilibrium real interest rate
A) the equilibrium real interest rate will rise. B) borrowers find it difficult to borrow. C) there is a shortage of loanable funds. D) Both answers B and C are correct.
What is the Herfindahl-Hirschman index?
What will be an ideal response?
According to the efficiency wage model, during a recession, firms will not reduce real wages because
A. unions would go on strike, reducing profitability. B. the equilibrium real wage has increased. C. legally, they can't. D. this would reduce worker effort and productivity.