How Is the Social Security Program Funded

question 10

Multiple Choice

How is the Social Security program funded?

• A)a tax on employee wages
• B)sales tax on luxury goods
• C)interest earned on loans to other countries
• D)sales of lottery tickets
• E)the sale of government bonds

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Definitions:

Identity

The characteristics, qualities, beliefs, and expressions that define an individual or group.

Endowment Effect

A cognitive bias that causes individuals to ascribe higher value to things merely because they own them.

Irrational Escalation

The phenomenon where individuals increase their investment in a decision based on the cumulative prior investment, despite new evidence suggesting that the decision was probably wrong.

Fixed Pie

A misconception in negotiations where parties incorrectly believe that their interests are directly opposed, assuming that one party's gain is the other's loss.