Recall the Application about how society will cope with increased demands for entitlement programs to answer the following question(s). This Application addresses the impact of increasing life expectancy and aging populations on the costs of government entitlement programs such as Social Security, Medicare and Medicaid, and examines several possible solutions to the potential problem.According to this Application, in the year 2075, the portion of GDP devoted to spending on Social Security, Medicare and Medicaid is expected to be:
A. significantly less than the share of GDP devoted to these programs today.
B. roughly equal to the total amount of GDP today.
C. larger than total federal spending's share of GDP today.
D. greater than the consumption spending component's share of GDP in 2075.
Answer: C
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A minimum wage law
A) lowers the wage rate of workers who are able to get a job. B) increases employment. C) increases the time spent searching by workers who cannot find a job. D) creates efficiency in the labor market. E) must be set below the equilibrium wage rate in order to have an impact.
Which of the following would cause the quantity of wheat bread demanded to increase, but not the demand for wheat?
a. a reduction in the price of rye, used to produce rye bread b. a new scientific study demonstrating that wheat bread reduces the risk of colon cancer c. a decrease in the price of rye bread d. an increase in the number of farmers growing wheat