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Misha Larkins [42]
3 years ago
14

8. Problems and Applications Q8 Social Security benefits are increased each year in proportion to the increase in the CPI, even

though most economists believe that the CPI overstates actual inflation. True or False: If the elderly consume the same market basket as other people, then Social Security would provide a decrease in their standard of living. True False Healthcare costs have risen faster than overall inflation. True or False: If the elderly consume a market basket that includes more healthcare than other people, they may be worse off even if Social Security benefits are adjusted for inflation. True False g
Business
1 answer:
oksano4ka [1.4K]3 years ago
6 0

Answer:

  1. False
  2. True

Explanation:

1. Social security benefits are increased each year in proportion to an increase in CPI which measures inflation. This CPI is based on a market basket that most people use. If the social security benefits that the elderly get rises as the price of the basket rises then Social Security would not provide a decrease in their standard of living but would rather leave it unchanged so this answer is <u>FALSE.</u>

2. If Healthcare is said to be rising faster than inflation and elderly people consume more health care then that means that Social security benefits which are based on a inflation are not capturing the rise in living expenses for the elderly appropriately. This means that old people might be worse off. This is therefore <u>TRUE. </u>

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Answer:

According to the data provided the opportunity costs is detailed below:

Initial Balance  $20,000

Monthly interst      $200

Investment             $500

________________________

The Opportunity cost is $500

Explanation:

The opportunity cost is the price you pay for not choosing best second alternative when you make a decision. In this case the person has three options:

1. Spending the money  

2. Save the money

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Once the money is spent the opportunity costs is generated and it is measured by the interest rate lost for not keeping the money in the investment that will generate an interest rate of $500 monthly.

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Alto Company issued 7% preferred stock with a $100 par value. This means that: Multiple Choice Only 7% of the total paid-in capi
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Answer:

The amount of the potential dividend is $7 per year per preferred share.  [$100 x 7%] = $7

Explanation:

The preferred stockholder will receive $ 7 per share held each year provided there are sufficient net income to distribute those dividend.

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3 years ago
Select the best answer: A Notary Signing Agent has been providing signing services with no incidents for over 10 years without h
joja [24]

Answer:

Must still arrange to obtain and pass a background screening

Explanation:

A notary agent is also called a signing agent and they obtain the official signature of an appearer on a document. They ensure that legal documents are authentic, they check identity of the person signing, and serve as witness.

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6 0
3 years ago
Select the correct text in the passage.
tia_tia [17]

Answer:

the answer is the first sentence and the last

Explanation:

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You are compiling Bertram Boat’s balance sheet. According to your calculations, Bertram has current assets of $85,000 and proper
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Answer:

$318,000

Explanation:

The computation of the total assets is shown below:

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= $85,000 + $235,000 - $2,000

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Since the current asset is already given so we considered the difference in amount to find out the total asset.

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