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.
Answer: C
You might also like to view...
A country possesses a comparative advantage in the production of a good if
A) the opportunity cost in terms of forgone output of alternative goods is lower for this country than it is for its trading partners. B) it possesses an absolute advantage in the production of this good. C) it is able to produce more of this good per hour than can any other country. D) all of the above.
In the long run, total fixed cost:
a. falls. b. rises. c. is constant. d. does not exist.
The opportunity cost of an economic action is
a. the value of the next best alternative that must be sacrificed b. an issue in normative economic theory c. the expense for the resources used plus the firm's profit d. the out-of-pocket cost e. the option to pay a reduced fee for the action
The Laffer curve illustrates that
a. deadweight loss rises by the square of the increase in a tax. b. deadweight loss rises exponentially as a tax increases. c. tax revenue first rises, then falls as a tax increases. d. Both a) and b) are correct.