Which Statement Is Accurate Regarding Social Security and Medicare

question 6

Multiple Choice

Which statement is accurate regarding Social Security and Medicare?

• A)The Social Security deficit can be corrected with some reasonable adjustment, but the future Medicare cost problem appears intractable.
• B)Because Social Security promises a service benefit, its costs are held hostage to rising health care costs.
• C)Because Medicare provides a cash benefit, the future costs are quite predictable.
• D)Medicare provides a benefit that is clearly defined by regulations for everyone who is covered while Social Security benefits depend on market forces.

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Definitions:

Marginal Utility

The change in total utility a person receives from consuming one additional unit of a good or service.

Change in Total Utility

The difference in the overall satisfaction a consumer receives before and after the consumption of an additional unit of a good or service.

Consuming One More Unit

The action or decision of using up an additional unit of a good or service and its impact, often related to marginal utility.

Budget Line

A graphical representation that shows all possible combinations of two goods that an individual can afford given their income and the prices of the goods.