Why Do Social Security and Medicare Pose Problems for the Federal

question 166

Multiple Choice

Why do Social Security and Medicare pose problems for the federal government budget?

• A) The programs do not cover enough people.
• B) The worker-to-retiree ratio is decreasing.
• C) The number of retirees is decreasing.
• D) The number of sick people is rising too quickly.
• E) Social insurance taxes are capped and cannot be raised.

Differentiate between risk-averse and risk-seeking behavior and their implications on decision-making.

Recognize the role of uncertainty in economic outcomes and personal finance decisions.

Understand and calculate the total utility of income and its relationship with risk aversion.

Analyze the impact of probabilities on expected outcomes and decisions.