The funds paid to the government today for Social Security taxes are
A) invested to provide for the future benefits of the taxpayers.
B) saved to ensure sufficient resources in the future to pay the benefits of workers today when they reach retirement age.
C) used by the government to purchase goods and services that will enhance the future productivity of business in the country.
D) used to pay the benefits of those who are currently retired.
Answer: D
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What happens when wages are set by law above the equilibrium level?
a. Firms employ fewer workers than they would at the equilibrium wage. b. Firms employ more workers than they would at the equilibrium wage. c. Firms tend to try to break the law and hire people at the equilibrium level. d. Firms hire more workers but for fewer hours than they would at the equilibrium wage.
As in the United States, an important factor in the banking crises in Latin America was the
A) financial liberalization that occurred in the 1980s. B) decline in real interest rates that occurred in the 1980s. C) high inflation that occurred in the 1980s. D) sluggish economic growth that occurred in the 1980s.