Why Do Social Security and Medicare Pose Problems for the Federal

question 97

Multiple Choice

Why do Social Security and Medicare pose problems for the federal government budget?

• A) The worker-to-retiree ratio is increasing.
• B) Payroll taxes are capped and cannot be raised.
• C) The number of retirees is decreasing.
• D) The number of sick people is rising too quickly.
• E) Life expectancy of retirees is increasing.

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Definitions:

General Partner

A general partner is an owner of a partnership who has unlimited liability and is typically involved in the day-to-day management of the business.

Share of Profit

An individual's or entity's portion of the net profits derived from a business venture, investment, or partnership.

Conversion

The wrongful act of taking or using someone else's property without permission, treating it as if it were one's own.

Preferred Stock

A class of share ownership in a corporation that typically confers priorities over common stock in dividend payments and upon liquidation.