Social Security Payments to Retired Persons Is an Example Of

question 173

Multiple Choice

Social Security payments to retired persons is an example of:

• A) government spending shortages, and they always lead to deficits.
• B) a government purchase.
• C) a transfer payment.
• D) income measured by using the value-added approach.

---

Definitions:

Nonsystematic Variance

The portion of an investment's total variance that is specific to the investment itself, not related to the overall market movements, and can be reduced by diversification.

Market Index

A statistical measure that represents the value of a section of the stock market, compiled from the prices of selected stocks to gauge market trends or portfolio performance.

Active Portfolio

An investment portfolio that is actively managed with the goal of achieving returns that outperform a specific benchmark or market index.