Social Security Began as a "Pay-As-You-Go" System,meaning That Payments to Current

question 211

Multiple Choice

Social Security began as a "pay-as-you-go" system,meaning that payments to current retirees were paid

• A)from taxes collected from current workers.
• B)from taxes collected from retired workers.
• C)as long as the government had funds available.
• D)as the government collected revenues from tariffs and excise taxes in the years Social Security payments were made.

---

Definitions:

Health Insurance

A type of insurance coverage that pays for medical and surgical expenses incurred by the insured, often including preventive care, and sometimes dental and vision benefits.

Adverse Selection

A situation where buyers and sellers have different information, leading to the market being dominated by inferior products because higher quality products are squeezed out.

Free Markets

Economic systems in which the prices for goods and services are determined by the open market and consumers, without government intervention.

Moral-Hazard Problem

A situation in which one party engages in risky behavior knowing that it is protected against the risk because another party will incur any resulting costs.