One of the Major Risks That Opponents Criticize Regarding the Proposal

question 25

Multiple Choice

One of the major risks that opponents criticize regarding the proposal to partially privatize Social Security funding is that ______.

• A) employers may fail to participate
• B) individuals may not make wise investment choices for the money they are responsible to invest
• C) too many individuals will participate, leading to a breakdown of the system
• D) the federal government will not be able to fund even the smaller portion for which it is responsible

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Definitions:

Efficiency Wage

A wage rate set above the market equilibrium to increase productivity and efficiency among workers by attracting and retaining higher-quality employees.

Above-Equilibrium Wage

A situation where wages for a job exceed the market equilibrium, often due to minimum wage laws, unions, or other factors, potentially causing a surplus of applicants.

Talented Pool

A collective term referring to a group of individuals who possess high levels of skill, expertise, or ability in specific areas.

Efficiency Wages

Wages intentionally set above the equilibrium level by employers to increase productivity, discourage turnover, and attract better talent.