The Social Security system is currently generating tax revenues that exceed the benefits paid to recipients. This surplus is
a. being invested in foreign bonds, which will provide Americans with a source of income when the baby boom generation retires.
b. separated from other government revenue so politicians will not spend the money during the current period.
c. being channeled into earmarked private savings accounts.
d. invested in government bonds, the redemption of which will require an increase in taxes (or additional Treasury borrowing).
D
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Use the above figure. When it maximizes its economic profits, the monopolistically competitive firm depicted in the figure
A) is earning an economic profit. B) is earning an accounting profit. C) is earning an economic loss. D) must increase output to reduce the ATC.
The main advantage of a corporate form of organization is that
A) shareholders have limited liability. B) shareholders have unlimited liability. C) shareholders are not subject to double taxation. D) all corporate profits must be distributed as dividends.