Social Security is a pure transfer program because
A) it transfers funds from current workers to the poor.
B) the government transfers funds from middle-income workers to welfare recipients.
C) current payroll taxes are used to pay the eligible retirees.
D) the government subsidizes the medical bill of the poor.
C
You might also like to view...
What does the assumption of perfect knowledge include?
What will be an ideal response?
Economists collect data on prices in every country and develop an index that describes the overall difference in prices between countries called the:
A. price parity purchasing index. B. consumer price index. C. consumer purchasing power index. D. purchasing power parity index.
Specialty shops can charge and get customers to pay higher prices for identical goods than they would pay in "big box" stores. Assuming that these differences are driven by store appearance rather than differences in services provided, which of the
following best explains this phenomenon? A. Availability heuristics. B. Framing effects. C. Confirmation biases. D. Self-serving biases.
Receiving a voucher for an apartment in a public housing project would be an example of a good that satisfies
A. the definition of a good with a positive externality. B. the principle of rival consumption. C. the nonexclusion principle. D. the definition of a public good.