Some Proponents of Entitlement-Program Reform Suggest Indexing Social Security Benefits

question 71

Multiple Choice

Some proponents of entitlement-program reform suggest indexing Social Security benefits to the consumer price index (CPI)

• A) because beneficiary payments are currently growing slower than cost of living increases.
• B) rather than to the producer price index,because CPI historically grows at a faster rate,which would mean benefit payments would grow at a faster rate.
• C) rather than to the producer price index,because CPI historically grows at a slower rate,which would mean benefit payments would grow at a slower rate.
• D) rather than to the average wage index,because CPI historically grows at a slower rate,which would mean benefit payments would grow at a slower rate.
• E) rather than to the average wage index,because CPI historically grows at a faster rate,which would mean benefit payments would grow at a faster rate.

---

Definitions:

Cash Flow Statement

A financial document that provides a summary of the money flowing into and out of a company during a specific period, distinguishing between operations, investments, and financing activities.

Cash Outflow

Money that flows out of a business, typically as payments for expenses, investments, or acquisitions.

Investing Activities

Transactions that involve acquiring or disposing of noncurrent assets.

Wage Expense

The total cost incurred by a company for paying its employees, including salaries, wages, and other compensation.