A pay-as-you-go system of financing Social Security is not as good as a fully funded system.

Suppose that the alternative uses of an hour of your time in the evening, ranked from best to worst, are (1) study economics, (2i) watch two half-hour TV sitcoms, (3) play pool, and (4) jog around town. You can only choose one activity. What is the opportunity cost of studying economics for one hour, given this information? a. Jogging around town

b. Watching two half-hour TV sitcoms. c. Playing pool. d. The sum of watching two half-hour TV sitcoms, playing pool, and doing your laundry.

The equality-of-sacrifice doctrine of taxation is based on the

a. increasing marginal utility of income. b. increasing marginal utility of government transfer payments. c. diminishing marginal utility of income. d. diminishing marginal utility of government transfer payments.