The pay-as-you-go nature of the Social Security system means that _____
a. current beneficiaries are paid out of general tax revenues
b. current beneficiaries are paid out of the payroll taxes levied on current workers
c. current beneficiaries are paid based on contributions made during their last five working years
d. current beneficiaries are paid out of current earnings on the Social Security trust fund
Ans: b. current beneficiaries are paid out of the payroll taxes levied on current workers
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When the interest rate on a bond is above the equilibrium interest rate, in the bond market there is excess ________ and the interest rate will ________
A) demand; rise B) demand; fall C) supply; fall D) supply; rise
Which of the following is true at each output level for a perfectly competitive firm?
a. MC = AVC = ATC b. MR = MC c. P > AVC d. AR = MR = P e. MR = AR = MC
Scarcity is a concept that applies to all of the following except
a. time. b. natural resources. c. human wants. d. machinery.
Which of the following is most likely to increase the net inflow of foreign capital?
a. an increase in the rate of inflation b. a decline in real GDP as the economy falls into a recession c. a reduction in domestic investment d. an increase in the real interest rate in the loanable funds market