Why Do Social Security and Medicare Pose Problems for the Federal

question 97

Multiple Choice

Why do Social Security and Medicare pose problems for the federal government budget?

• A) The worker-to-retiree ratio is increasing.
• B) Payroll taxes are capped and cannot be raised.
• C) The number of retirees is decreasing.
• D) The number of sick people is rising too quickly.
• E) Life expectancy of retirees is increasing.

---

Definitions:

Fixed Asset Turnover Ratio

A financial metric used to evaluate how effectively a company uses its fixed assets to generate sales.

Operating Income

The profit realized from a business's core operations, calculated before interest and taxes.

Average Fixed Assets

The mean value of a company's fixed assets, like plant and equipment, calculated over a specific period of time.

Double-Declining Balance Method

A method of accelerated depreciation calculating an asset's loss of value at double the rate of the straight-line depreciation method.