Why Is the Retirement of the Baby-Boom Generation Considered a Problem

question 77

Multiple Choice

Why is the retirement of the baby-boom generation considered a problem for the future of Social Security?

• A) More retirees mean more people on Medicare, which shares a funding pool with Social Security.
• B) Retirees tend to cluster in certain states, which means that the states they are moving from will lose the benefits of their Social Security payments.
• C) Social Security functions best when there are fewer workers and more retirees, thus increasing support for the program.
• D) Retiring baby boomers will reduce the number of workers per retiree and strain the financial resources of the program.

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Definitions:

Demand Reduction

A decrease in the quantity of a good or service that consumers are willing and able to purchase at a given price.

Price Increase

An upward adjustment in the selling price of goods or services, often due to factors like increased production costs or higher demand.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price level, at a given time.

Price Falls

A decrease in the market price of goods or services, often due to increased supply, decreased demand, or external market factors.