One Proposed Solution to the Funding Problems Faced by Social

question 113

Multiple Choice

One proposed solution to the funding problems faced by Social Security and Medicare is to implement means-testing,so that only those with limited retirement funds would qualify for the government benefits.An unintended consequence of such a requirement may be

• A) an increase in private saving.
• B) a decrease in the incentive to save for retirement.
• C) improved solvency for Social Security and Medicare.
• D) fewer elderly people receiving benefits.
• E) that some workers paying into the programs never receive any benefits from the programs.

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Definitions:

Cannibalization

When a company's new product eats into the sales of one of its existing products, potentially reducing overall sales revenue.

Pricing Constraints

Limitations or factors that affect the setting of prices for goods and services, such as cost of production, competition, and customer demand.

Regulatory Commissions

Official bodies or organizations responsible for the control and supervision of specific industries or fields, ensuring compliance with laws and regulations.

Rate Increase

An adjustment in the price or cost of a service or product, typically an upward revision, by a company or a regulatory body.