What Is a Major Critique of Partial and Full Privatization

question 31

Multiple Choice

What is a major critique of partial and full privatization of Social Security?

• A) Recipients will receive less money.
• B) The federal government gets to decide which private investments are made.
• C) State governments would tax profits made from private investments.
• D) Transition to privatization would be expensive.

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Definitions:

Marginal Benefit

The additional satisfaction or utility gained by consuming one more unit of a good or service, important for decision-making in consumption and production.

Marginal Benefit

The extra pleasure or benefit gained by an individual from consuming one more unit of a product or service.

Profit-Maximizing Principle

The economic principle that firms operate to achieve the highest possible profit from their operations, by adjusting output levels, pricing, or resource usage.

Marginal Analysis

An examination of the benefits and costs of an additional unit of change in economic decisions.