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:

Commission

A fee paid to an agent or employee for conducting a transaction or service, usually a percentage of the sale price.

Principals

The main parties involved in a financial transaction or agreement, often referring to the owners or significant stakeholders.

Gross Cost

The total cost of a product or service before any deductions, discounts, or allowances are applied; the raw cost of an item.

Commission

A fee paid to an agent or employee for transacting a piece of business or performing a service, especially a percentage of the money received from a total paid to the agent responsible for the business.