Which of the Following Is a Concern Among Economists Regarding

question 27

Multiple Choice

Which of the following is a concern among economists regarding the aging of the U.S. population?

• A) Since older people typically consume less, the aging of the population will lead to lower consumption and thus lower GDP.
• B) Since older people typically consume different goods (more health care and prescription drugs, less pizza and beer), an aging population will lead to increased structural unemployment in certain areas of the economy (such as the pizza and beer industries).
• C) Since older people are less likely to work, an aging population will lead to a decreased labor force participation rate in the United States and lower tax revenues.
• D) Since older people are more likely to favor increasing Medicare and prescription drug benefits, an aging population will alter political support for such programs.

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Definitions:

Domestic Quantity Demanded

The total amount of a good or service that consumers in a particular country want to buy at given prices.

Tariff

A tax imposed on imported goods and services, intended to increase the cost of imported items and protect domestic industries from foreign competition.

Price

The fund requirement for the acquisition of a good or service.

Free Trade

Global trade allowed to proceed without any tariffs, quotas, or limitations, following its natural flow.