Which of the Following Best Explains Why the Social Security

question 348

Multiple Choice

Which of the following best explains why the Social Security system is expected to face financial difficulties in the near future?

• A) Too much Social Security revenue was invested in the private sector rather than in government bonds.
• B) The federal government does not pay interest on the money it borrows from the Social Security system.
• C) The funds in the Social Security trust fund were invested in high-risk ventures that failed to pay off.
• D) The number of workers paying into the system is expected to decline relative to the number of retirees collecting benefits.

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Definitions:

Monopolistic Competitor

A firm in a market structure where many companies sell products that are similar but not identical, allowing for some control over prices.

Monopolistic Competitors

Companies in a market where many sellers offer products that are similar but not identical, giving each some degree of market power.

Small Companies

Businesses with a smaller scale of operations, employee base, and market presence, often characterized by lower revenues than larger corporations.

Business Firms

Business firms are commercial organizations engaged in the production, distribution, or sale of goods and services for profit.