The Social Security System of the United States Is Based

question 83

Multiple Choice

The Social Security system of the United States is based on the pay-as-you-go principle. This indicates that funding of the benefits paid to current retirees comes primarily from

• A) the income generated by the system's ownership of stock.
• B) the tax payments of current workers.
• C) the funds that current retirees paid into their personal savings accounts during their working years.
• D) money created by the Federal Reserve system.

---

Definitions:

Population Variance

A measure of the spread or dispersion within a dataset, representing the average of squared deviations from the mean.

Level of Significance

The likelihood of incorrectly dismissing the null hypothesis in a statistical analysis, frequently represented by the symbol alpha.

Population Variance

A measure quantifying the degree to which individual points in a whole population differ from the population mean.

Hypotheses

Proposed explanations made on the basis of limited evidence as starting points for further investigation.