The Social Security System Is Currently Generating Tax Revenues That

question 95

Multiple Choice

The Social Security system is currently generating tax revenues that exceed the benefits paid to recipients. This surplus is

• A) being invested in foreign bonds, which will provide Americans with a source of income when the baby boom generation retires.
• B) separated from other government revenue so politicians will not spend the money during the current period.
• C) being channeled into earmarked private savings accounts.
• D) invested in government bonds, the redemption of which will require an increase in taxes (or additional Treasury borrowing).

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Definitions:

Personal Freedom

The liberty of an individual to exercise certain rights, freedoms, and expressions without unwarranted interference or restriction.

Bystander Effect

A social psychology phenomenon where individuals are less likely to offer help to a victim when other people are present, often attributed to diffusion of responsibility.

Natural Source

A resource that originates from the natural environment and is used for human needs or economic purposes.

Legal Liability

Legal liability refers to the legal responsibility of an individual, organization, or entity for actions or omissions that result in harm or damage, subjecting them to legal penalties, fines, or damages.