Pay-as-you-go social security
A) can never improve economic welfare for everyone.
B) can improve welfare for everyone if the population growth rate is large enough.
C) is always inefficient.
D) is not used by any countries in the world.
B
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The aggregate demand curve shows that, if other factors are held constant, the higher the price level, the
A) greater the quantity of real GDP demanded. B) smaller the quantity of real GDP demanded. C) larger consumption expenditure. D) None of the above answers is correct.
The strict crowding-out argument relies on the assumption that
A. the government must raise taxes to pay for spending, and the tax increase crowds out the stimulative effect of increased spending. B. the total flow of saving is a fixed amount. C. investment is invariant to interest rates, but very dependent on aggregate spending. D. consumption will rise to absorb most of an increase in income, and investment will accordingly fall.
If the marginal propensity to save is 0.3, the marginal propensity to import is 0.1, and the government increases expenditures by $10 billion, ignoring foreign-income repercussions, how much will gross domestic product (GDP) rise?
A. $10 billion. B. $15 billion. C. $20 billion. D. $25 billion.
The demographic transition view of population and growth in DVCs is that:
A. The most important factor affecting population growth in DVCs are demographic changes among the elderly B. Slower population growth is neither desirable nor productive for DVCs given the state of the economies in these nations C. Reduced birthrates must come first in DVCs, and then higher per capita incomes will follow D. Higher per capita incomes must come first in DVCs, and then reduced birth rates will follow