One of the consequences of the overstatement of the CPI is that
A. the poverty line is lower than it would otherwise be.
B. Social Security payments are lower than they would otherwise be.
C. Social Security taxes are higher than they would otherwise be.
D. personal income taxes are higher than they would otherwise be.
Answer: C
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Draw a graph showing a line with a positive slope. Draw a graph showing a line with a negative slope. Explain what the shape of these lines implies about the relationship between the variable on the x-axis and the variable on the y-axis?
What will be an ideal response?
For a monopoly, the demand for its product is perfectly elastic at the market price
Indicate whether the statement is true or false
Which of the following is not an explanation of why the Gramm-Rudman-Hollings Act proved inadequate in reducing the deficit?
A. The Supreme Court declared the automatic mechanism for budget cuts unconstitutional. B. Congress controls only the cyclical portion of government spending. C. Congress wasn't willing to cut spending enough. D. Congress wasn't willing to increase taxes enough.
A large aircraft manufacturer, like Boeing, may have a cost advantage over a new smaller manufacturer because of:
A. diseconomies of scale. B. economies of scale. C. diminishing returns to a fixed factor of production. D. the principal agent problem is generally less severe for larger firms.