The dire predictions about the underfunded nature of Social Security, Medicare, and state and local pensions could be wrong because
A. interest rates may turn out to be higher in the future.
B. unemployment rates may turn out to be higher than they are currently predicted to be.
C. GDP grown may turn out to be higher than it is currently predicted to be.
D. taxable incomes may turn out to be lower than they are currently predicted to be.
Answer: C
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Moving along the aggregate supply curve,
A) the quantity of capital used increases. B) technology advances. C) the stock of human capital increases. D) only the price level changes. E) the real wage rate is constant.
Policymaking in a representative democracy
a. is straightforward and does not involve any disagreement. b. benefits from the input of economists, even if their advice is not always followed. c. is conducted without the input of economists. d. is always based exclusively on the results of economic analysis.
As a means of dealing with pollution, do economists generally prefer corrective taxes or do they prefer regulations?
Answer the following statements true (T) or false (F)
1. Economics is the social science concerned with the best use of scarce resources to achieve maximum satisfaction of economic wants. 2. Marginal analysis is the valuation of insignificant or small benefits from doing things. 3. Rational behavior implies that different people faced with similar choices will make the same decisions. 4. Economic analysis is primarily concerned with marginal changes from the status quo, as a result of a certain action or decision.