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:

Machine Hours

A measure of the amount of time a machine is run during a specific period, often used as a basis for allocating manufacturing overhead.

Overapplied

Overapplied refers to a situation where the overhead allocated to products or services exceeds the actual overhead costs incurred, usually in manufacturing settings.

Underapplied

A term often used in accounting to refer to a situation where the allocated costs are less than the actual costs incurred.

Job Order Cost System

An accounting system that accumulates manufacturing costs separately for each job or order, tracking direct labor, direct materials, and applied overhead.