One Proposed Solution to the Funding Problems Faced by Social

question 118

Multiple Choice

One proposed solution to the funding problems faced by Social Security and Medicare is to increase the retirement age from 67 to 70.Although this would mean billions of dollars in savings for these federal programs,an unintended consequence may be

• A) a decrease in life expectancy.
• B) an increase in the unemployment rate.
• C) an increased number of elderly people in the workforce.
• D) less incentive for people to work longer.
• E) an increased incentive for people to work longer.

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Definitions:

Linear Variable Cost Function

A mathematical expression that describes how total variable costs change with changes in the quantity of output.

Marginal Cost

The cost incurred by producing one more unit of a good or service.

Constant

A value that does not change.

Production Function

An economic model that describes the relationship between inputs used in production and the resulting output.