Recall the Application about how society will cope with increased demands for entitlement programs to answer the following question(s). This Application addresses the impact of increasing life expectancy and aging populations on the costs of government entitlement programs such as Social Security, Medicare and Medicaid, and examines several possible solutions to the potential problem.According to this Application, one strategy proposed to deal with the rising expenses of government entitlement programs is for the government to save and invest now so as to reduce the burden on future generations. This strategy would:
A. increase GDP, and entitlement programs would increase along with GDP.
B. increase GDP and entitlement programs would decrease.
C. increase GDP and eliminate entitlement programs.
D. not change GDP, but shrink entitlement programs.
Answer: A
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The management of a rental building faces a rent control situation, where it cannot charge more than $400 a month in rent on the apartment. The management knows that the apartments are high in demand and renters would be willing to be $1000 per month for them. The management decides to offer the controlled rent, rents furniture to its tenants, but successfully bars delivery from competing
furniture stores. This is an example of a. Tying b. Bundling c. Exclusion d. Fraud
Which of the following transitional economies has become a high-income nation?
a. Czech Republic b. Kazakhstan c. China d. Vietnam e. None of the answers is correct
A car rental company will earn a net income of $6,000 per year on a new car for the first three years of its life. After three years, the car will be worthless. If the interest rate is 10 percent (0.10) per ear, what is the present value of the car to the car rental company? (Assume that each year's income is received at the end of the year.)
a. $16,413.22 b. $14,921.11 c. $18,000.00 d. $16,363.62 e. $13,523.67
A simple linear demand function may be stated as Q = a - bP + cI where Q is quantity demanded, P is the product price, and I is consumer income. To compute an appropriate value for c, we can use observed values for Q and I and then set the estimated income elasticity of demand equal to:
A. c(Q/I). B. -b(I/Q). C. Q/(cI). D. c(I/Q).