What are unfunded liabilities? Give an example
Please provide the best answer for the statement.
Unfunded liabilities are commitments made by the federal government to make a series of future expenditures without simultaneously committing to collect enough tax revenues to pay for them. The Social Security program in the United States is an example of an unfunded liability. The government does not collect enough tax revenue to fully fund the expected expenditures that must be paid in the future. Another example is Medicare.
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In a recent court case, an expert witness defined a monopoly as a firm that can "raise price without reducing its total revenue"
What does this imply about the elasticity of demand? Would this definition hold for a profit-maximizing monopoly? Explain.
Which of the following monetary policies would be appropriate to close a recessionary gap?
a. A tax cut b. A decrease in government purchases c. An increase in reserve requirements d. The Fed's purchase of U.S. government securities e. The Fed's raising the discount rate
A consumer is in equilibrium when the slope of his or her indifference curve is equal to his or her budget constraint
a. True b. False Indicate whether the statement is true or false
To internalize a positive externality:
a. the consumers of a good could receive a subsidy equal to the external benefit resulting from the production or consumption of the good. b. a producer's costs could be increased by an amount equal to the external benefit resulting from the production of the good. c. consumers of the good could pay a tax equal to the external benefit resulting from the production or consumption of the good. d. None of the above are correct.