Say that an economic model concludes that "government raising payroll taxes is a measure that can maintain current Social Security benefit levels for every retiree." This conclusion is:
A. false because there is no payroll tax rate high enough to maintain current benefits.
B. a statement in the art of economics because it is about policy.
C. a positive statement because raising payroll taxes is one way to maintain Social Security benefits.
D. a normative statement because there is disagreement over whether Social Security benefits should be maintained.
Answer: C
You might also like to view...
The gap between real GDP per person in the United States and South America has been narrowing since 1980
Indicate whether the statement is true or false
The smaller the required reserve ratio, the larger the simple deposit multiplier
Indicate whether the statement is true or false
As the price level rises, real wage ____________and people choose to work ___________
A) rises; more B) rises; less C) falls; more D) falls; less
Which of the following is NOT a result of a permanent fall in foreign demand on one country's exports under floating exchange rate?
A) The DD curve shifts to the left due to reduction of aggregate demand. B) The AA curve shifts upwards due to the increased expected long-run exchange rate. C) a reduction in output by a smaller degree compared to temporary fall in demand D) depreciation in home country's currency E) a raised level of unemployment