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The social security system has been, according to some, in danger of collapse and insolvency for some time now. Since 1950 the number of workers supporting one retiree has fallen from 16.5 to 3 while the tax assessed against wages has increased from 1% of income up to $3,000.00 to 6.5% of the first $106,800.00 plus 1.45 % of all earnings for Medicare. The taxes are assessed against both the employee and the employer. It is expected the number of workers supporting one retiree will continue to fall and that taxes will probably have to be raised as well as the age at which a retiree can receive benefits. Discuss the following proposals advanced to “solve” the looming economic crisis concerning social security:
(A) Privatization of social security
(B) Means testing
(C) Elimination of cost of living adjustments
A firm has fixed cost of 2,000.Its short-run production function is y+4X and one-half, where x is the amount of variable factor it uses. The price of the variable factor is $3,000 per unit. Illustrate where y is the amount of output the short-run..
Why do firms in a monopolistically competitive industry advertise? Research a firm you feel would be in monopolistic competition and explain their advertising scheme in a short summary. Be sure and cite your reference.
Given our current economic situation, determine the steps that the Federal Reserve should take to help stabilize our economy. Then, explain how each of the following variables will be affected by proposed steps that you have identified: money supply,..
Find the total revenue of the monopolist when it sells 6 units of the commodity without practicing any form of price discrimination. What is the value of the consumers' surplus?
When it comes to the tobacco industry, discuss if you believe it is possible for a company to cater to both its best interest and that of the consumer conjointly or if one always has to prevail.
A decrease in government spending initially and primarily shifts which curve in what direction?
The Rule of 70 applies in any growth rate application. Let’s say you have $1000 in savings and you have three alternatives for investing these funds.
Supporters and opponents of partial privatization of Social Security agree that partial privatization plans would. Corporate welfare” is a term used by
Mike finds a Coke machine in an abandoned part of town and is extremely thirsty. The coke machine requires exact change- Two quarters and a dime. No other combination of coins will make anything come out of the machine. Does Mike always prefer more o..
Would the worker be better or if, instead of the health insurance, she was given a £100 per week pay increase which would be taxed at 20%.
In the last years of the 1980s exports increased dramatically. The effects on the U.S. economy include, ceteris paribus,
In the market for foreign-currency exchange in the open-economy macroeconomic model, which of the following does the amount of net capital outflow represent?
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