Which of the Following Is NOT a Prominent Proposal to Reform

question 14

Multiple Choice

Which of the following is NOT a prominent proposal to reform the social security program?

• A) privatizing
• B) removing the cap on payroll taxes, so that people with higher level wages pay more taxes.
• C) reducing benefits by raising retirement age to 70
• D) requiring recipients to undergo employment training and obtain jobs

---

Definitions:

Variable Input

An input in the production process that can be adjusted in the short run to change the level of output, such as labor hours or raw materials.

Marginal Cost

The investment required to manufacture one more unit of a product or service.

Diminishing Marginal Returns

A principle stating that as one factor of production increases, while others stay constant, the additional output will eventually decline.

Marginal Cost

The expansion in total financial commitment from producing one extra unit of a product or service.