One Criticism of Social Security Programs Such as the Guaranteed

question 115

Multiple Choice

One criticism of social security programs such as the Guaranteed Income Supplement is that

• A)it promotes efficiency rather than equity.
• B)it helps equity but hurts efficiency.
• C)it gives too much money to the elderly.
• D)it gives too much money to the poor.
• E)it gives too much money to the rich.

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Definitions:

Inflation Rate

The rate at which the general level of prices for goods and services is rising, and, subsequently, eroding purchasing power.

Annual Output

The total value of goods and services produced by an economy or a firm in one year.

Rational Expectations

The economic theory suggesting individuals make decisions based on their logical expectations for the future, effectively using all available information to predict future events accurately.

Long-Run Phillips Curve

A concept suggesting that in the long term, there is no trade-off between inflation and unemployment, implying that inflation does not affect the natural rate of unemployment.