Present value analysis suggests that high-income earners
A. make a competitive real rate of return through Social Security.
B. can make an average real rate of return through Social Security only if they live to age 100.
C. cannot make an average real rate of return through Social Security even if they live past 100.
D. can make an average real rate of return through Social Security only if they live to age 65.
Answer: C
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In the United States, between 1961 and 2011, there has been
i. a consistent , non-changing growth rate of potential GDP per person. ii. an increase in the standard of living based on real GDP per person. iii. fluctuations in real GDP per person around potential GDP per person. A) ii only B) i, ii and iii C) i and ii only D) ii and iii E) i only
The sample average of the OLS residuals is
A) some positive number since OLS uses squares. B) zero. C) unobservable since the population regression function is unknown. D) dependent on whether the explanatory variable is mostly positive or negative.
The federal funds rate is the interest rate paid when
a. the Federal Reserve makes loans to member banks. b. taxpayers pay overdue taxes. c. one bank borrows reserves from another bank. d. banks make loans to the federal government. e. the federal debt is refinanced.
Exhibit 11-4 Supply and demand curves for food servers
In Exhibit 11-4, the equilibrium wage and the number of food servers employed per day, respectively, are:
A. $2.00 and 5,000. B. $4.00 and 10,000. C. $6.00 and 15,000 D. $8.00 and 20,000.