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:

Bidders

Individuals or entities that offer a price for goods or services, especially at auctions.

Winner's Curse

A phenomenon in auctions where the winner tends to overpay due to incomplete information or overly optimistic valuation of the asset.

Rivals' Information

Data or intelligence about competitors’ strategies, performance, and operations, useful for gaining a competitive advantage in the market.

Fewer Bidders

a situation in auctions or competitive environments where there is a reduced number of participants bidding for the same item or contract.