Which of the Following Best Explains Why the Social Security

question 87

Multiple Choice

Which of the following best explains why the Social Security system will face financial difficulties in the future?

• A) Too much Social Security revenue was invested in the private sector rather than in government bonds.
• B) In the next two decades, the number of workers paying into the system will decline sharply relative to the number of retirees collecting benefits.
• C) The federal government does not pay interest on the money it borrows from the Social Security system.
• D) The funds in the Social Security trust fund were invested in high-risk ventures that failed to pay off.

---

Definitions:

Purchased Lots

Refers to parcels or quantities of goods acquired by a company, often used in reference to real estate or bulk purchases of inventory.

Relevant Cost

Costs that will be affected by a decision and will have an impact on the future.

Variable Production Cost

Charges that fluctuate in line with production levels, such as direct labor and materials used.

Split-off

A point in the production process where multiple products are derived from a common input, and separate paths of further processing or sale are identified.