The Social Security System Redistributes Income from

question 48

Multiple Choice

The Social Security system redistributes income from

• A) low-wage workers to high-wage workers.
• B) people with longer life expectancies to people with shorter life expectancies.
• C) women to men.
• D) None of these answers is correct.

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Definitions:

Total Utility

The total satisfaction received from consuming a certain amount of goods or services.

Marginal Utility

The incremental utility or happiness a consumer derives from acquiring and using an additional unit of a good or service.

Utility Per Dollar

A measure of the satisfaction or usefulness obtained from purchasing goods or services relative to the amount of money spent.

Diminishing Marginal Utility

The principle stating that as more of a good or service is consumed, the marginal benefit of additional units will decline.