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
b
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The output level produced by a profit-maximizing monopolist:
a. exceeds the level that would maximize social welfare. b. is allocatively efficient. c. is less than the level that would maximize social welfare. d. always results in economic profits in the long run.
When prices are used as a rationing device, goods that are relatively more scarce than they used to be will have
A) greater demand. B) lower excess demands. C) higher prices. D) long queues.