Both Social Security and Medicare Are Pay-As-You-Go Programs

question 347

Multiple Choice

Both Social Security and Medicare are pay-as-you-go programs. This means that

• A) current taxpayers fund the benefits that are currently paid out.
• B) future beneficiaries contribute to a pool of funds today that will be used to pay for their benefits in the future.
• C) the government sets money aside funds for the benefits, which will be tapped as needed.
• D) beneficiaries pay for the programs as they enter into them.

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Definitions:

Government

The system or group of people governing an organized community, often a state, including its institutions, laws, and policies.

Plymouth Colony

An early settlement established in 1620 by English Puritans in present-day Massachusetts, known for the celebrated Thanksgiving feast.

Mayflower Compact

An agreement reached by the Pilgrims on the Mayflower in 1620, establishing self-governance in Plymouth Colony.

Civil Government

The branch of government concerned with the administration of the state, including the implementation and enforcement of laws and the management of public affairs.