Trends in the Number of Workers Contributing to the Social

question 231

Multiple Choice

Trends in the number of workers contributing to the Social Security system and the number of workers drawing benefits from the system suggest that future generations will

• A) have more frequent cost-of-living adjustments.
• B) see significant improvements in the level of benefits.
• C) face a later retirement age in order to qualify for full Social Security benefits.
• D) not be allowed to invest in private pension plans.

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Definitions:

Unemployed Resources

Resources such as labor and capital that are not currently being used in the production process.

Classical Macroeconomic Theory

An economic theory that emphasizes the self-regulating nature of markets and the natural adjustments of markets to achieve full employment equilibrium.

Flexible Interest Rate

refers to an interest rate that can change over the term of a loan or deposit based on market conditions.

Credit Supplied

The total amount of credit available to borrowers from lenders within the market.