Which of the following are reasons why Social Security is compulsory?
a. A pay-as-you-go system needs new contributors to maintain solvency.
b. A pay-as-you go system cannot let older individuals opt out of benefits.
c. The adverse selection problem.
d. all of the above
e. a and c
e
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Managers of profit centers are usually given a lot of discretion because
a. They always do an excellent job b. The company can never judge their performance c. The company has a clear performance evaluation metric d. They rarely ever do a good job
The shares of GDP taken in taxes by federal, state & local governments
a. have risen steadily in the past 40 years to about 22 percent. b. have dropped steadily in the past 40 years to about 6 or 7 percent. c. grew substantially until the early 1970s and have leveled off at about 10 to 11 percent. d. fell steadily until the early 1970s and has risen steadily since then.
A change in the money wage rate shifts
What will be an ideal response?
Suppose there are 100 firms in a market and all are identical. Firm A will hire 20 workers when the wage rate is $10, 25 workers when the wage rate is $9, and 30 workers when the wage rate is $8. The equilibrium wage rate for a number of years has been $9. If the wage rate falls to $8, we know that
A. the quantity demanded for the market will increase to more than 3,000 workers. B. the quantity demanded for the market will increase to less than 3,000 workers. C. the quantity demanded for the market will increase to 3,000 workers. D. the quantity demanded for the market will increase, but we can't tell which of these answers is correct.