How Do the Guarantees of Social Security and Medicare Create

question 14

Multiple Choice

How do the guarantees of Social Security and Medicare create a policy challenge?

• A) Decision makers have to keep programs solvent as well as dealing with political barriers to making any cuts that would maintain their solvency.
• B) Decision makers have to figure out to balance the requirements of funding these programs in the context of spending on other national needs.
• C) Decision makers must determine how to adjust the benefits and the taxes that fund these programs to more effectively redistribute income.
• D) Shifting control of these programs to independent agencies makes oversight a very challenging task.

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Definitions:

Excess Demand

A situation in a market where the quantity demanded of a good or service exceeds the quantity supplied at the current price.

Market Supply Curve

A graphical representation showing the relationship between the price of a good and the total output produced by all firms in the market.

Input Prices

The costs associated with the materials, labor, and overhead that go into producing goods or services.

Producers' Decisions

The choices made by firms regarding the production, pricing, and distribution of goods and services.