Which of the Following Statements Is False

question 55

Multiple Choice

Which of the following statements is False?

• A) A cut in Social Security benefits of 12.8 percent for each of the next 75 years would close the 75-year funding gap
• B) If started now, the long-run Social Security deficit could be avoided by raising taxes.
• C) If all surplus funds in the Social Security Trust Fund were invested in private securities, the long-run Social Security deficit would be eliminated.
• D) Increasing the retirement age by four years would help finance pension liabilities.

---

Definitions:

Arbitrage

The practice of buying and selling the same assets in different markets to take advantage of differing prices for the same asset.

Antitrust Laws

Legislation enacted to prevent monopolies or unfair business practices that restrict free competition, thereby protecting consumers and ensuring a fair market environment.

Natural Monopoly

A type of monopoly that exists due to the high cost or complexity of operating in a specific industry, which effectively prevents other competitors.

Monopoly Inefficiency

The loss of economic efficiency that occurs when a single firm controls the market, leading to higher prices and lower product quantity or quality than in competitive markets.