Which of the Following Explains Why Both Democrats and Republicans

question 91

Multiple Choice

Which of the following explains why both Democrats and Republicans agree that entitlement programs are in danger of failure in the future?

• A)Many millennials may choose not to contribute to the programs.
• B)The contributory programs fail to account for demographic factors, with a ratio of workers to retirees approaching two to one.
• C)The Social Security and Medicare trust funds were invested in real estate funds that went bankrupt in 2007-09.
• D)Many people from around the globe retire in the United States to take advantage of the generous Social Security and Medicare benefits.
• E)The welfare state is an automatic stabilizer.

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Definitions:

Moral Hazard

a situation in which an individual or entity is more likely to take risks because they won't bear the full consequences of their actions, often due to asymmetric information or insurance.

Tuition

The fee charged for instruction or education, often by a college or university.

Moral Hazard

The situation where one party is likely to take risks because the negative consequences of the risk will fall on another party.

All-You-Can-Eat Buffets

Dining establishments that offer customers unlimited food for a single fixed price, promoting consumption without restriction.