Recall the Application about how society will cope with increased demands for entitlement programs to answer the following question(s). This Application addresses the impact of increasing life expectancy and aging populations on the costs of government entitlement programs such as Social Security, Medicare and Medicaid, and examines several possible solutions to the potential problem.According to this Application, in the year 2075, the portion of GDP devoted to spending on Social Security, Medicare and Medicaid is expected to be:
A. significantly less than the share of GDP devoted to these programs today.
B. roughly equal to the total amount of GDP today.
C. larger than total federal spending's share of GDP today.
D. greater than the consumption spending component's share of GDP in 2075.
Answer: C
You might also like to view...
Expected utility is a weighted average in which the weights are
A) average incomes. B) marginal incomes. C) total incomes. D) probabilities.
If the firm in Figure 17-4 above maintains its set price of P0, rather than dropping price to P1, the loss of consumer surplus due to this decision is
A) J + K. B) K - G. C) G + H. D) H + K.
After the Civil War (1861–1865), the cotton South
(a) continued to experience prosperity. (b) was no longer the main contributor to the agricultural sector, as wheat production elsewhere began to prosper. (c) experienced prosperity in some Southern states but not in all. (d) was no longer the major source of income for the South; Southerners quickly supplemented their cotton incomes with income generated by the manufacturing sector.
Most economists believe that in the long run, changes in the money supply
a. affect nominal but not real variables. This view that money is ultimately neutral is consistent with classical theory. b. affect nominal but not real variables. This view that money is ultimately neutral is inconsistent with classical theory. c. affect real but not nominal variables. This view that money is ultimately neutral is consistent with classical theory. d. affect real but not nominal variables. This view that money is ultimately neutral is inconsistent with classical theory.