Why Do Consumers Benefit from Pay-As-You-Go Social Security

question 27

Multiple Choice

Why do consumers benefit from pay-as-you-go social security?

• A)With sufficiently high population growth, many young contribute to the benefits of the old.
• B)With sufficiently low population growth, the young can perpetually contribute more.
• C)It is a better way than taxes to finance the government.
• D)It keeps inflation in check as money is redistributed.
• E)It forces people to save more than they would otherwise.

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Definitions:

Complements

Goods or services that increase the usability or desirability of another product or service when used in conjunction, leading to a demand relationship.

French Fries

Sliced potatoes that are deep-fried and commonly served as a side dish or snack, known for their crispy exterior and soft interior.

Hamburgers

A popular food item typically consisting of a ground meat patty placed inside a bun, often served with various condiments and toppings.

Normal Good

A product whose demand increases when consumers' income rises, and falls when income decreases, under the assumption all other factors remain constant.