In Order to Maintain a Stable Pay-As-You-Go Social Security System

question 7

Multiple Choice

In order to maintain a stable pay-as-you-go Social Security system when people are living longer:

• A) average benefits could be increased and the payroll tax rate could be reduced.
• B) average benefits could be reduced and the payroll tax rate could be increased.
• C) the retirement age must be raised.
• D) the payroll tax rate must be raised.

---

Definitions:

Total Utility

The complete fulfillment attained through the consumption of a specific amount of a product or service.

Concentration In Industry

Industry concentration describes the extent to which a small number of firms occupy a large proportion of the market.

Scientific Research

Systematic investigation and study conducted to increase knowledge and understanding of the natural world, often leading to new inventions or discoveries.

Creative Destruction

A concept in economics which signifies the process by which new innovation leads to the demise of older technologies or businesses, fostering marketplace evolution.