Suppose That the Ratio of Retirees to Working Citizens Is

question 25

Essay

Suppose that the ratio of retirees to working citizens is currently 1 to 5,meaning that there are 5 working people for every retiree.Suppose that in thirty years the ratio will change to 1 to 2.If benefits remain the same,what will happen to the tax rate assuming retirees are provided benefits in a pay-as-you-go system? How much would benefits decrease if the tax rate remained the same?

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Definitions:

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, part of behavioral psychology.

Classical Conditioning

A method of associative learning in which two stimuli are repeatedly correlated; eventually, the response initially due to the second stimulus is provoked by the first stimulus alone.

Self-efficacy

An individual's belief in their own capability to perform actions effectively and achieve desired outcomes.

Vicarious Reinforcement

Learning that occurs by observing the rewards or punishments that another person receives, influencing the observer's future behavior.