Given the Structure and Level of Gross Replacement Rates and the Expected

question 5

Multiple Choice

Given the structure and level of gross replacement rates and the expected future growth of labor earnings subject to the payroll tax, the tax rates used to tax payrolls were increased in the 1980s because:

• A)the number of retirees per worker will increase.
• B)the number of retirees per worker will decrease.
• C)wages are expected to decline.
• D)the size of the workforce is expected to increase.

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Definitions:

Motivation

A need or desire that energizes and directs behavior.

Eugenics

The science of improving a human population by controlled breeding to increase the occurrence of desirable heritable characteristics.

Intellectual Functioning

The capacity of the mind to think, learn, and understand effectively and efficiently.

Lewis Terman

A psychologist known for his work in intelligence testing and the longitudinal study of gifted children.