Some Proponents of Entitlement-Program Reform Suggest Indexing Social Security Benefits

question 71

Multiple Choice

Some proponents of entitlement-program reform suggest indexing Social Security benefits to the consumer price index (CPI)

• A) because beneficiary payments are currently growing slower than cost of living increases.
• B) rather than to the producer price index,because CPI historically grows at a faster rate,which would mean benefit payments would grow at a faster rate.
• C) rather than to the producer price index,because CPI historically grows at a slower rate,which would mean benefit payments would grow at a slower rate.
• D) rather than to the average wage index,because CPI historically grows at a slower rate,which would mean benefit payments would grow at a slower rate.
• E) rather than to the average wage index,because CPI historically grows at a faster rate,which would mean benefit payments would grow at a faster rate.

Recognize the role of innovation during the industrial revolution.

Assess the relationship between health care spending and GDP.

Evaluate work hours in relation to productivity and international comparisons.

Understand the basic concepts of GDP per capita and its significance in comparing economic health.

---

Definitions:

Unemployment

The situation when people who are willing to work at prevailing wage rates cannot find jobs.

Equilibrium

A state in which supply and demand are balanced, resulting in stable prices.

Supply And Demand

A fundamental economic concept that describes how prices vary based on the balance between the quantity of a good or service provided and the quantity consumers wish to purchase.

Union Workers

Individuals employed in various industries who are members of a labor union, an organization that advocates for workers' rights and benefits.