The Main Problem with the Social Security Program Is That

question 18

Multiple Choice

The main problem with the social security program is that ______.

• A) it will soon run out of money since, as a welfare program, it is politically unpopular
• B) it will soon run out of money to pay benefits because few workers will be paying into the system
• C) it will soon run out of money; it's financed through taxes at a time when governments are reducing taxes
• D) it will soon run out of money because of the increase in employed workers trying to access benefits

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Definitions:

Interest Rate

The percentage of a loan charged as cost to the borrower for the use of the money.

Capital Projects

Long-term investments made by companies or governments to create, improve, or maintain physical assets.

Interest Rate

The percentage charged by a lender to a borrower for the use of assets, typically expressed as an annual percentage of the principal.

Present Value

The present value of a future amount of money or a series of cash flows, calculated using a predetermined rate of return.