Both Social Security and Medicare Are Pay-As-You-Go Programs

question 206

Multiple Choice

Both Social Security and Medicare are pay-as-you-go programs. This means that:

• A) current taxpayers fund the benefits that are currently paid out.
• B) future beneficiaries contribute to a pool of funds today that will be used to pay for their benefits in the future.
• C) the government pays for the benefits as the beneficiaries enter into the system.
• D) beneficiaries pay for the programs as they enter into them.

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Definitions:

General Adaptation Syndrome

A theoretical model describing the body's short-term and long-term reactions to stress, consisting of three stages: alarm, resistance, and exhaustion.

Hormones

Chemical messengers that are produced by the endocrine glands and carried by the bloodstream to all parts of the body.

Hypothalamic-Pituitary-Adrenal Axis

A complex set of interactions among the hypothalamus, pituitary gland, and adrenal glands, regulating stress response.

Chronic Stress

A persistent state of stress that can lead to long-term health problems, including anxiety, depression, and cardiovascular disease.