Which of the Following Is NOT True Regarding Social Security

question 40

Multiple Choice

Which of the following is NOT true regarding Social Security?

• A)Social Security provides a source of income for American retirees, disabled workers, and surviving dependents of workers who have died.
• B)Social Security provides some health insurance coverage through the federal Medicare program.
• C)Social Security is financed only by the employer contributions.
• D)To be eligible for Social Security, employees must be employed for a minimum of 40 quarters.
• E)Social Security benefits vary based on the previous year's inflation, additional earnings, and recipient age.

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Definitions:

Price Elasticities

Measures of how sensitive the demand or supply of a product is to changes in its price.

Tax Burden

The total amount of taxes paid by individuals or businesses, expressed as a percentage of income or as an absolute amount.

Supply and Demand

A fundamental economic model that describes how prices and quantities are determined in a market based on producers' supply and consumers' demand.

Domestic Producer Surplus

The difference between the amount domestic producers are willing to accept for a good or service and the actual amount they receive.