Question 1

A modest increase in taxes could postpone Social Security's financial crisis for decades.

Accepted Answer

A) True 
 B)False

Question 2

Social Security taxes are

Accepted Answer

A) Paid only by workers 
B) Levied on salaries and wages 
C) Paid only by employers 
D) Paid by both workers and employers 
E) (b)and (d) 
A) Paid only by workers 
B) Levied on salaries and wages 
C) Paid only by employers 
D) Paid by both workers and employers 
E) (b)and (d)

Question 3

How are Social Security tax revenues allocated today?

Accepted Answer

A) They are used to pay today's Social Security beneficiaries,and any extra is placed into the Social Security Trust Fund 
B) All of today's revenues are placed in the Social Security Trust fund to pay for tomorrow's beneficiaries 
C) Tax revenues are placed into accounts for each worker who will draw upon the balance when they retire 
D) The revenues are invested in government securities and in the stock market 
E) No one really knows 
A) They are used to pay today's Social Security beneficiaries,and any extra is placed into the Social Security Trust Fund 
B) All of today's revenues are placed in the Social Security Trust fund to pay for tomorrow's beneficiaries 
C) Tax revenues are placed into accounts for each worker who will draw upon the balance when they retire 
D) The revenues are invested in government securities and in the stock market 
E) No one really knows

Question 4

The Following Questions Refer to the graph below.  
-If patients pay the full price for of office visits,how many office visits will they make?

Accepted Answer

A) 0 
B) 30 
C) 50 
D) 70 
E) More than 70 
A) 0 
B) 30 
C) 50 
D) 70 
E) More than 70

Question 5

If a program's benefits are funded out of current payments,it is which type of system?

Accepted Answer

A) An investment system 
B) A fully funded scheme 
C) A pyramid scheme 
D) A pay-as-you-go system 
E) An endowed system 
A) An investment system 
B) A fully funded scheme 
C) A pyramid scheme 
D) A pay-as-you-go system 
E) An endowed system

Question 6

The prescription drug benefit that is part of the Medicare Modernization Act of 2003 requires that recipients pay:

Accepted Answer

A) a monthly premium 
B) a co-pay 
C) a deductible 
D) all of the above 
E) none of the above,these benefits are provided to recipients at no charge 
A) a monthly premium 
B) a co-pay 
C) a deductible 
D) all of the above 
E) none of the above,these benefits are provided to recipients at no charge

Question 7

"An agreement to pay a premium to a company in return for a guarantee of financial benefits in the event of an undesired circumstance" defines

Accepted Answer

A) Social insurance 
B) Private insurance 
C) Private investment 
D) Asset management 
E) Retirement savings 
A) Social insurance 
B) Private insurance 
C) Private investment 
D) Asset management 
E) Retirement savings

Question 8

Over time,Social Security has evolved to focus more on the family and less on the individual.

Accepted Answer

A) True 
 B)False

Question 9

Investments of social security tax payments result in high returns on the contributions made by taxpayers.

Accepted Answer

A) True 
 B)False

Question 10

Because Social Security increases savings,more funds are available for investment in the overall economy.

Accepted Answer

A) True 
 B)False

Question 11

Third-party payments increase the efficiency of medical markets.

Accepted Answer

A) True 
 B)False

Question 12

As originally designed,Social Security was to be financed as a

Accepted Answer

A) Private insurance program 
B) Pure income transfer program 
C) Pay-as-you-go insurance program 
D) Fully-funded insurance program 
E) Means-tested benefits program 
A) Private insurance program 
B) Pure income transfer program 
C) Pay-as-you-go insurance program 
D) Fully-funded insurance program 
E) Means-tested benefits program

Question 13

Studies show that Social Security has caused some workers to retire earlier than they would if Social Security did not exist.

Accepted Answer

A) True 
 B)False

Question 14

Health insurance results in

Accepted Answer

A) An increase in the quantity of health care demanded 
B) An increase in the quantity of health care provided 
C) An increase in the total cost of providing health care 
D) All of the above 
E) None of the above 
A) An increase in the quantity of health care demanded 
B) An increase in the quantity of health care provided 
C) An increase in the total cost of providing health care 
D) All of the above 
E) None of the above

Question 15

Given the way Social Security is financed,which of the following is true?

Accepted Answer

A) Social Security results in a transfer of income from the old to the young 
B) Social Security results in a transfer of income from the young to the old 
C) Social Security has a neutral effect on the nation's income distribution 
D) The purchasing power of the elderly has been diminished by Social Security taxes 
E) (a)and (d) 
A) Social Security results in a transfer of income from the old to the young 
B) Social Security results in a transfer of income from the young to the old 
C) Social Security has a neutral effect on the nation's income distribution 
D) The purchasing power of the elderly has been diminished by Social Security taxes 
E) (a)and (d)

Question 16

Medicare and Medicaid have reduced the demand for health care services.

Accepted Answer

A) True 
 B)False

Question 17

The Following Questions Refer to the graph below.  
-The supply of medical services in this market is

Accepted Answer

A) Elastic 
B) Inelastic 
C) Unit elastic 
D) Price elastic 
E) Infinite 
A) Elastic 
B) Inelastic 
C) Unit elastic 
D) Price elastic 
E) Infinite

Question 18

Empirical studies indicate that Social Security has

Accepted Answer

A) Increased the level of personal savings 
B) Had a neutral effect on the level of personal savings 
C) Reduced the level of personal savings 
D) Increased the number of older workers 
E) Raised the average age at which workers choose to retire 
A) Increased the level of personal savings 
B) Had a neutral effect on the level of personal savings 
C) Reduced the level of personal savings 
D) Increased the number of older workers 
E) Raised the average age at which workers choose to retire

Question 19

A consumer with health insurance is likely to buy more health services than one who is not insureD.

Accepted Answer

A) True 
 B)False

Question 20

Today,Social Security is financed under a pay-as-you-go financial system.

Accepted Answer

A) True 
 B)False

A modest increase in taxes could postpone Social Security's financial crisis for decades.

Social Security taxes are

How are Social Security tax revenues allocated today?

The Following Questions Refer to the graph below. -If patients pay the full price for of office visits,how many office visits will they make?

If a program's benefits are funded out of current payments,it is which type of system?

The prescription drug benefit that is part of the Medicare Modernization Act of 2003 requires that recipients pay:

"An agreement to pay a premium to a company in return for a guarantee of financial benefits in the event of an undesired circumstance" defines

Over time,Social Security has evolved to focus more on the family and less on the individual.

Investments of social security tax payments result in high returns on the contributions made by taxpayers.

Because Social Security increases savings,more funds are available for investment in the overall economy.

Third-party payments increase the efficiency of medical markets.

As originally designed,Social Security was to be financed as a

Studies show that Social Security has caused some workers to retire earlier than they would if Social Security did not exist.

Health insurance results in

Given the way Social Security is financed,which of the following is true?

Medicare and Medicaid have reduced the demand for health care services.

The Following Questions Refer to the graph below. -The supply of medical services in this market is

Empirical studies indicate that Social Security has

A consumer with health insurance is likely to buy more health services than one who is not insureD.

Today,Social Security is financed under a pay-as-you-go financial system.

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Exam 15: Social Security and Medicare: How Secure Is Our Safety Net for the Elderly

A modest increase in taxes could postpone Social Security's financial crisis for decades.

Social Security taxes are

How are Social Security tax revenues allocated today?

The Following Questions Refer to the graph below. -If patients pay the full price for of office visits,how many office visits will they make?

If a program's benefits are funded out of current payments,it is which type of system?

The prescription drug benefit that is part of the Medicare Modernization Act of 2003 requires that recipients pay:

"An agreement to pay a premium to a company in return for a guarantee of financial benefits in the event of an undesired circumstance" defines

Over time,Social Security has evolved to focus more on the family and less on the individual.

Investments of social security tax payments result in high returns on the contributions made by taxpayers.

Because Social Security increases savings,more funds are available for investment in the overall economy.

Third-party payments increase the efficiency of medical markets.

As originally designed,Social Security was to be financed as a

Studies show that Social Security has caused some workers to retire earlier than they would if Social Security did not exist.

Health insurance results in

Given the way Social Security is financed,which of the following is true?

Medicare and Medicaid have reduced the demand for health care services.

The Following Questions Refer to the graph below. -The supply of medical services in this market is

Empirical studies indicate that Social Security has

A consumer with health insurance is likely to buy more health services than one who is not insureD.

Today,Social Security is financed under a pay-as-you-go financial system.

Alleviating Human Misery: The Role of Economic Reasoning

Economic Systems, Resource Allocation, and Social Well-Being: Lessons From Chinas Transition

Government Control of Prices in Mixed Systems: Who Are the Winners and Losers

Pollution Problems: Must We Foul Our Own Nests

Economics of Crime and Its Prevention: How Much Is Too Much

The Economics of Education: Crisis and Reform

Poverty Problems and Discrimination: Why Are so Many Still so Poor

The Economics of Monopoly Power: Can Markets Be Controlled

The Economics of Professional Sports: What Is the Real Score

Competition in the Global Market-Place: Should We Protect Ourselves From International Trade

Economic Growth: Why Is the Economic Road so Bumpy

Money,Banking and the Financial System: Old Problems With New Twists

Unemployment and Inflation: Can We Find a Balance

Government Spending,Taxation,and the National Debt: Who Wins and Who Loses

Filters