In a Frictionless World

question 11

Multiple Choice

In a frictionless world

• A) Fully funded social security must necessarily make everyone better off, as it provides for retirement.
• B) Fully-funded social security is a constraint on private saving behavior, and therefore cannot make anyone better off.
• C) Fully funded social security is always preferred to pay-as-you-go social security.
• D) Fully funded social security is more efficient, because it is a private program instead of a government program.

---

Definitions:

Dividends

Earnings distributed to a company's shareholders, commonly as a profit disbursement.

Fees Earned

Income received for services provided, often used in professional and consulting business models.

Supplies

Items used in the operation of a business, often consumable, like stationery, raw materials, or maintenance supplies.

Utilities Expense

The cost incurred by businesses for basic services such as water, electricity, gas, and telecommunications.