Social Security began as a "pay-as-you-go" system, meaning that payments to current retirees were paid
A) from taxes collected from current workers.
B) from taxes collected from retired workers.
C) as long as the government had funds available.
D) as the government collected revenues from tariffs and excise taxes in the years Social Security payments were made.
Answer: A
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Suppose the Okun's law coefficient is 2, the full-employment level of output is $5000 billion, and the natural rate of unemployment is 6%
(a) What is the current level of output if the current unemployment rate is 8%? (b) Suppose the unemployment rate falls to 5%; what is the current level of output? (c) Suppose structural changes in the economy raise the natural rate of unemployment to 7%, and lower the full-employment level of output to $4800 billion. If the current unemployment rate is 8%, what is the current level of output?
In a market where the equilibrium price is $7, any price lower than $7 would cause
a. a balanced demand and supply b. an excess supply c. an excess demand d. none of the above
Unemployment insurance and the proportional nature of the tax system are examples of:
A. both discretionary and automatic fiscal policy. B. expansionary fiscal policy. C. discretionary fiscal policy. D. automatic fiscal policy.
Which of the following factors explains why managers of government agencies have little incentive to achieve operational efficiency?
a. Public-sector managers have no fear of bankruptcy when operational efficiency is not achieved. b. Public-sector managers face fierce competition. c. It is relatively easy for voters to detect operational inefficiency in the public sector and do something to correct it. d. All of the above explain why government agencies have little incentive to be efficient.