If Households Ignore Effects on Future Generations, a Pay as You

question 41

Multiple Choice

If households ignore effects on future generations, a pay as you go social security system:

• A)decreases consumption.
• B)increases the capital stock in the long run.
• C)reduces national saving.
• D)all of the above.

---

Definitions:

Identifying Information

Personal or unique data that can be used to distinctly identify, contact, or locate an individual, such as a name, Social Security number, or address.

Reservation Price

The maximum price a consumer is willing to pay for a good or service.

Marginal Cost

The increase in total cost that arises from producing one additional unit of goods or services.

Consumer Demands

The quantity of goods and services that consumers are willing and able to purchase at various prices during a specified time period.