Which One of the Following Statements Is Accurate

question 37

Multiple Choice

Which one of the following statements is accurate?

• A) The proportion of revenue received from payroll taxes is much lower today than in the early 1960s.
• B) The proportion of revenue received from corporate income taxes is much less today than in the early 1960s.
• C) The proportion of spending on the net interest on the debt is much higher today than it was in the early 1960s.
• D) The proportion of spending on Social Security is lower today than in the early 1960s.

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Definitions:

Winner's Curse

A phenomenon that occurs in common value auctions, where the winner tends to overpay due to overly optimistic estimation of the asset's value.

Optimistic Estimate

A projection or forecast that assumes the most favorable conditions and outcomes.

Bid Shading

The strategy of making a bid lower than what a bidder is actually willing to pay, typically to save money in auctions or competitive tender processes.

Bid-rigging

An illegal agreement between parties to conspire and fix the bidding process, often in procurement auctions.