Why Does Dealing with the Policy Challenges of Medicare and Social

question 8

Multiple Choice

Why does dealing with the policy challenges of Medicare and Social Security create a prisoner's dilemma?

• A) The benefits awarded by these programs are not regulated in any way, so seniors consume a large share of the federal economy.
• B) The transaction costs of reaching a deal are high because there are so many actors who will want to be involved.
• C) Finding a focal point to start the discussions is a very real challenge and with neither side knowing where to start the conversation.
• D) Each side knows that they could benefit from reaching a landmark entitlement reform deal if they could just trust the other side to cooperate.

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Definitions:

Graduate School

An advanced program of study focused on a particular academic discipline or profession, typically requiring the completion of a bachelor's degree for admission.

Second Job

Additional employment taken on in addition to a primary job, often to supplement income or explore different interests.

Moving

The act of changing one's residence or place of business to a new location.

Post-Formal Thought

A stage of cognitive development going beyond Piaget's formal operational stage, characterized by the understanding that truth may vary from situation to situation and the capacity for integrative thinking.