Which of the Following Is an Indication That the Government

question 138

Multiple Choice

Which of the following is an indication that the government recognizes Social Security money will not provide you with ample funds for retirement?

• A) The government has provided cost-of-living adjustments to Social Security recipients.
• B) The government has invested the contributions in high-yielding investment securities.
• C) The government has established incentives for workers to save their own money for retirement.
• D) The government has passed legislation to require Social Security to maintain a balanced budget.

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Definitions:

Economics of Collective Decision Making

The study of how decisions are made in groups, societies, or organizations where individual choices affect the collective.

Public Choice Analysis

A branch of economics that studies the decision-making processes of government bodies as well as the behavior of voters, politicians, and government officials.

James Buchanan

An American economist known for his work on public choice theory, which explains how political decision-making processes affect economic policies, and the recipient of the Nobel Memorial Prize in Economic Sciences in 1986.

Public Choice Analysis

A field of economics that studies how economic theory and methodologies apply to the public sector, analyzing government behavior and decision-making processes.