Macro Econ questions..

Macroecon | 2-16-10 | Me

[Paul46360]

these questions were from my Macro Econ quiz..
I am curious to see how well you all can answer them...

Which of the programs below would not transfer wealth between young and old generations?
a.Taxes are raised to provide better education.
b.Taxes are raised to improve government infrastructure such as roads and bridges.
c.Taxes are raised to provide more generous Social Security benefits.
d.Taxes are raised to provide more generous Medicare benefits.

Which of the programs below would transfer wealth from the young to the old?
a.Taxes are raised to provide better education.
b.Taxes are raised to improve government infrastructure such as roads and bridges.
c.Taxes are raised to provide more generous Social Security benefits.
d.None of the above transfer wealth form the young to the old.

Which of the following would transfer wealth from old to young?
a.Increases in the budget deficit.
b.Decreased building of highways and bridges.
c.More generous education subsidies.
d.Indexation of Social Security benefits to inflation.

[Paul46360]

Will give the book answers later...

[a1gpac]

b, c, c

[kbennkc]

Will give the book answers later...

I'll be waiting with the right answers until I hear what's in it for me . TANSTAAFL .

[Jersey Republican Biker Chick]

B, A, C

[mnehring]

studying intergenerational risk sharing huh?

[octex]

Agree. b, c, c

[Timocrat]

Agreed b c c

[finish9]

since the questions are from a liberal text book and has nothing to do with reality and the central answer thread is education, then I postulate b,a,c.

[Paul46360]

The author is N. Gregory Mankiw.
Not too liberal..does give an positive nod to Keynes economics, but nothing that would cause a thinking person to accept.
I posted on the class site a video disputing the theory..sadly no debate about it, but I do sense that the other students due understand the risks of tax and spend which is all we can hope for..

[norwaypinesavage]

When there is a large budget deficit, all tax increases transfer wealth from the younger generation to the current taxpayers.

[Paul46360]

your choices were correct..thanks for participating..