Social Security Is Called a "Pay as You Go" System

question 48

Multiple Choice

Social Security is called a "pay as you go" system. This means that ______.

• A) benefits that the U.S. government currently pays out are funded through currently collected taxes
• B) individuals control the investment of their Social Security dollars (also called privatized)
• C) it is a means-tested program
• D) money taken out for Social Security today will pay for benefits in the future

---

Definitions:

Total Product

The total quantity of output produced by a firm over a given period of time.

Average Product

The output per unit of a particular input, calculated by dividing total output by the quantity of inputs.

Labor

Human effort, either physical or mental, used in the production of goods and services.

Average Product

The output per unit of input, calculated by dividing the total output by the number of units of the input.