quiz?ctx pszmedra-0 ions takeQuiz&qui2-probGuida Q4 PLCOA801 O·00000042 1 ed 1 5

Question

quiz?ctx pszmedra-0 ions takeQuiz&qui2-probGuida Q4 PLCOA801 O·00000042 1 ed 1 536433970549 0AAA062B01653EE m/af nics FA18 Home Grades nalized Reviews Discussion Course Materials Measuring the Cost of Living: Algorithmic End of Chapter Graded Assignment | Read Chapter 24 | Back to Assignment Due Saturday 09.08.18 at 11:45 PM Average: 2 Attempts: 8. Problems and Applications Q8 Social Security benefits are increased each year in proportion to the increase in the CPl, even though most economists believe that the CP overstates actual inflation. an increase in their standard of True or False: If the elderly consume the same market basket as other people, then Social Security would provide living. True O 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. O True False

Explanation / Answer

8.

A.

True

Elderly will be better off, because CPI is overstated in nature and social security benefits will increase, with increase in CPI without considering the fact that CPI is overstated. Besides, elderly has more time to find goods at relatively cheaper price. So, their standard of living improves.

B.

True

Since health care cost is increasing faster than the inflation rate, then elderly people will be getting worse off as rate of increase in the health care cost is more than the rate of increase in the social security benefits.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.