Describe the U.S. Social Security system and explain how it is funded
Originally created as a trust fund system designed to be actuarially sound, the addition of new categories of eligibility and increases in benefits led to the point that the system was taking money from current workers and paying it out to retirees. Reforms in the early 1980s, which increased payroll tax payments into the system and reduced withdrawals, have produced a surplus for the time being. Projections for early next century show the surplus depleted and a deficit in payroll tax collections to meet benefits distribution under the system as currently structured.
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Which of the following outcomes is NOT a result of a tax imposed on sellers of gasoline?
A) Supply decreases, a deadweight loss is created, and the price rises. B) The market becomes less efficient and the government collects the tax revenue. C) Demand does not change, the price rises, and consumer surplus decreases. D) Demand decreases, the market becomes more efficient, and the price rises.
An unintentional consequence of using mail-in ballots in a small community is:
A. decreased costs associated with voting. B. decreased pressure from others to fulfill their civic duty. C. increased costs associated with tallying the votes. D. increased pressure from government to vote.
Using the equation of exchange, if the nominal GDP is $8,000 billion and the money supply is $1,600 billion, then
A) the price level is 5.0. B) the price level is 0.2. C) velocity is 5.0. D) velocity is 0.2.
According to the interest-rate-based monetary policy transmission mechanism
A. an increase in money supply will decrease interest rates. B. a decrease in money supply will not change interest rates. C. a decrease in money supply will decrease interest rates. D. an increase in money supply will increase interest rates.