In 2011, Which of the Following Temporary Changes to Social

question 27

Multiple Choice

In 2011, which of the following temporary changes to Social Security was enacted to boost the economy?

• A)Benefits were increased by 10%.
• B)The portion of payroll taxes paid by employees was reduced from 6.2% to 4.2%.
• C)The portion of payroll taxes paid by employers was reduced from 6.2% to 4.2%.
• D)The maximum taxable earnings was reduced to $40,000.

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Definitions:

Marginal Cost

The cost incurred by producing one additional unit of a product, reflecting changes in variable costs.

Public Good

An offering of goods or services to the entire population of a society free of charge, provided by governmental bodies or private parties, without the aim of earning a profit.

Government

The system or group of people governing an organized community, often a state, and the institution through which societies are ruled and regulations are enforced.

Demand Curves

Graphs showing the relationship between the price of a good and the quantity of that good consumers are willing and able to purchase at various prices.