Explain how the Social Security program is partly an insurance plan and partly a form of welfare
What will be an ideal response?
Social Security is an insurance program to the extent that individuals pay contributions into the system and receive benefits in the future in proportion to their current contributions. Social Security is partly a redistributive program because payments to beneficiaries are not made in proportion to taxes paid. For example, married couples with one working spouse receive higher benefits relative to contributions than a single individual having made identical lifetime contributions.
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Could the advent of the Internet completely eliminate frictional unemployment?
What will be an ideal response?
According to your authors, economics
A) alone is not the only, or even the best, perspective to make sense out of the real world. B) can predict real-world phenomena with roughly 85-90% accuracy. C) generates conclusions every reasonable person should accept as true. D) is a false doctrine because individuals have been shown to act non-selfishly.
What is the profit-maximizing rule for a monopolistically competitive firm?
A) to produce a quantity that maximizes market share B) to produce a quantity that maximizes total revenue C) to produce a quantity such that price equals marginal cost D) to produce a quantity such that marginal revenue equals marginal cost
Which of the following best explains why marginal revenue for a monopolist is less than the sales price? a. To sell more units, the monopolist must reduce price on all units sold
b. As the monopolist expands output, the average total cost of production declines. c. The monopolist charges each consumer the highest possible price. d. When a firm has a monopoly, consumers have no choice other than to pay the price set by the monopolist.