Which of the Following Is a Reason There Is Redistribution

question 14

Multiple Choice

Which of the following is a reason there is redistribution from those born later to those born earlier?

• A) Social Security benefits diminish with age,and those born earlier lived longer.
• B) Those born earlier paid into the system for only part of their lives but received benefits throughout their retirement.
• C) The size of the payroll tax has remained constant over the years.
• D) Social Security benefits have increased over the years in order to keep pace with inflation.

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Definitions:

Marginal Analysis

An approach in economics that involves examining the consequences of adding to or subtracting from the current situation.

Opportunity Cost

Foregoing the opportunity for advantages from different choices by opting for a specific one.

Monetary Cost

Monetary cost refers to the total amount of money that is spent to purchase goods or services.

Opportunity Cost

The benefit that is missed or given up when an investor, individual, or business chooses one alternative over another.